Non-discretionary fiscal policy designed to counteract a reduction in aggregate demand might include

Question

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Increased government spending on unemployment benefits is a form of non-discretionary fiscal policy that can help counteract a reduction in aggregate demand. This policy provides income to individuals who have lost their jobs, which can help boost overall consumer spending and stimulate economic growth. Options A and B are not forms of non-discretionary fiscal policy, and may not necessarily be effective in counteracting a reduction in aggregate demand. Option D includes an incorrect option, as option A and B are not correct.

Non-Discretionary Fiscal Policy Designed to Counteract a Reduction in Aggregate