What are the two types of discretionary fiscal policy?
A) automatic and expansionary
B) expansionary and contractionary
C) expansionary and recessionary
D) automatic and contractionary

Question

Quizplus · Accepted Answer

The two types of discretionary fiscal policy are expansionary and contractionary. Expansionary fiscal policy involves increasing government spending and/or decreasing taxes to stimulate economic growth and reduce unemployment. Contractionary fiscal policy involves decreasing government spending and/or increasing taxes to slow down economic growth and combat inflation.

What Are the Two Types of Discretionary Fiscal Policy