The changing of government expenditures or taxes to achieve national economic goals is

Question

Quizplus · Accepted Answer

Discretionary fiscal policy refers to the government's intentional changing of its expenditures or taxes in order to achieve economic goals such as reducing unemployment or controlling inflation. This stands in contrast to automatic fiscal policy, which takes effect automatically without intentional government action in response to changes in the economy. Recessionary fiscal policy refers to actions taken to stimulate the economy during a recession, such as increasing government spending or reducing taxes. Inflationary fiscal policy refers to actions taken to slow down an overheating economy and control inflation, such as decreasing government spending or increasing taxes. However, neither of these terms accurately describes the type of fiscal policy described in the question, which is intentional and discretionary.

The Changing of Government Expenditures or Taxes to Achieve National