During a severe recession,the government decides to lower its tax rates to give consumers relief,and allow them to pay less in taxes.This is an example of:

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Discretionary fiscal policy refers to intentional changes in government spending, taxes, or transfer payments to stabilize the economy. Lowering tax rates during a severe recession is an example of a discretionary fiscal policy aimed at increasing disposable income and boosting consumer spending to stimulate economic growth. Automatic stabilizers, on the other hand, are built-in features of the economy that automatically cushion fluctuations in economic output, such as unemployment insurance or progressive taxes. Contractionary fiscal policy involves reducing government spending or increasing taxation to slow down inflation or reduce overheating in the economy, which is not relevant in this scenario.

During a Severe Recession,the Government Decides to Lower Its Tax