There are two forms of fiscal policy: discretionary and automatic.

Question

Quizplus · Accepted Answer

This is true, there are two forms of fiscal policy: discretionary and automatic. Discretionary fiscal policy refers to deliberate changes in government spending or taxation to achieve economic goals, while automatic fiscal policy refers to changes in government spending, taxation, or transfer payments that happen automatically without specific action from government officials.

There Are Two Forms of Fiscal Policy: Discretionary and Automatic