Which of the following is an example of a discretionary fiscal policy action?
A)increasing government spending to deal with a recession
B)a decrease in tax revenues as taxpayers' incomes decrease
C)increasing the minimum wage rate
D)raising regulations in the health care industry

Question

Quizplus · Accepted Answer

Discretionary fiscal policy refers to deliberate changes in government spending or taxation, implemented to influence the economy. Increasing government spending to deal with a recession is an example of discretionary fiscal policy as it involves the government increasing its spending to stimulate the economy and create jobs. The other choices are not examples of discretionary fiscal policy as they do not involve deliberate changes in government spending or taxation.

Which of the Following Is an Example of a Discretionary