If there is a deliberate change in government taxes and spending, it is called
A) a recessionary gap.
B) an inflationary gap.
C) discretionary fiscal policy.
D) discretionary monetary policy.

Question

Quizplus · Accepted Answer

Discretionary fiscal policy refers to deliberate changes in government taxes and spending to influence the economy. Therefore, C is the correct answer to the question. A and B refer to different types of gaps in the economy, and D refers to monetary policy, not fiscal policy.

If There Is a Deliberate Change in Government Taxes and Spending