Discretionary (deliberate)changes in fiscal policy attempt to _________ the process of closing a recessionary or an expansionary gap,while employment insurance payments and social assistance payments,acting as automatic stabilizers,tend to reduce economic fluctuations because they automatically ________ during a recessionary gap and ________ during an expansionary gap.

Question

Quizplus · Accepted Answer

Discretionary fiscal policy aims to speed up the process of closing economic gaps by actively changing government spending or taxes. Automatic stabilizers like employment insurance increase during recessions to support incomes and decrease during expansions to prevent overheating.

Discretionary (Deliberate)changes in Fiscal Policy Attempt to _________ the Process