The critical elements of nondiscretionary fiscal policy are

Question

Quizplus · Accepted Answer

Nondiscretionary fiscal policy, also known as automatic stabilizers, includes mechanisms like a progressive income tax system and welfare programs (such as unemployment benefits) that automatically adjust to counteract economic fluctuations without the need for explicit government intervention. These elements help stabilize income and consumption levels during economic downturns or upturns.

The Critical Elements of Nondiscretionary Fiscal Policy Are