When changes in taxes and government spending occur in the economy without explicit action by Congress, such policy is called ______ ﬁscal policy.
A) cyclical
B) implicit
C) discretionary
D) nondiscretionary

Question

Quizplus · Accepted Answer

Nondiscretionary fiscal policy refers to automatic stabilizers like taxes and government spending that adjust themselves without the need for explicit action by Congress, in response to changes in the economic conditions.

When Changes in Taxes and Government Spending Occur in the Economy