Use the figure below to answer the following questions.
Figure 13.3.1
-Refer to Figure 13.3.1, which shows the outlays and revenues for the government of Pianoland.Discretionary fiscal policy would be shown as a movement
A)from left to right along the revenues curve.
B)from right to left along the revenues curve.
C)from left to right along the outlays curve.
D)from right to left along the outlays curve.
E)none of the above

Question

Use the figure below to answer the following questions.
  Figure 13.3.1
-Refer to Figure 13.3.1, which shows the outlays and revenues for the government of Pianoland.Discretionary fiscal policy would be shown as a movement
A)from left to right along the revenues curve. 
B)from right to left along the revenues curve. 
C)from left to right along the outlays curve. 
D)from right to left along the outlays curve. 
E)none of the above

Quizplus · Accepted Answer

Discretionary fiscal policy involves deliberate changes in government spending or taxes to influence the economy. It does not simply involve movements along existing curves of revenues or outlays, but rather shifts in these curves themselves due to policy decisions.

Use the Figure Below to Answer the Following Questions