Question

When the government passes a new law that explicitly changes overall tax or spending levels, it is enacting: a discretionary fiscal policy. b progressive fiscal policy. c regressive fiscal policy. d fiscal policy?

Answer 1

Discretionary fiscal policy is implemented when the government passes a new law wherein it explicitly changes the overall tax and the spending levels. This can be applied when a certain economy is in recession where the government can lower taxes and increase the spending.

Answer 2

Discretionary fiscal policy is implemented when the government passes a new law wherein it explicitly changes the overall tax and the spending levels. This can be applied when a certain economy is in recession where the government can lower taxes and increase the spending.