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 that adjust with economic conditions without the need for explicit legislative action, such as unemployment benefits and progressive taxes.

When Changes in Taxes and Government Spending Occur in the Economy