Asked by Greyson Grubb on May 20, 2024

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Deliberate changes in government expenditures and taxes to influence the level of aggregate demand in the United States

A) define automatic stabilizers.
B) define discretionary fiscal policy.
C) are enacted by the Council of Economic Advisers.
D) operate without time lags.

Discretionary Fiscal Policy

Government policy involving deliberate manipulation of government spending and taxes to influence the economy based on current economic conditions.

Aggregate Demand

Aggregate demand is the total demand for all goods and services within an economy at a given overall price level and in a given time period.

  • Determine and appraise the strategies and efficacy of discretionary fiscal policy in controlling economic cycles.
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TS
Tarun SinghMay 22, 2024
Final Answer :
B
Explanation :
Discretionary fiscal policy refers to the deliberate changes in government expenditures and taxes to influence the level of aggregate demand. This involves intentional actions by the government to adjust its spending and tax policies to achieve economic objectives, such as controlling inflation, stimulating economic growth, or reducing unemployment.