Nondiscretionary Fiscal Policy works by having

Question

Quizplus · Accepted Answer

Nondiscretionary Fiscal Policy works by automatically adjusting government spending and taxation in response to changes in the economy. The progressive income tax system takes a larger percentage of income from those with higher incomes, which helps to dampen periods of economic growth. Welfare programs also reduce spending on people when they have increased incomes, which helps to reduce inflationary pressures and keep the economy stable. Therefore, both options (A) and (C) are correct and answer (D) includes both.

Nondiscretionary Fiscal Policy Works by Having