C
H
O
O
S
E

T
O
P
I
C

Choose a topic


Fiscal policy is carried out primarily by

The federal government

In the Employment Act of 1946, the Federal government committed itself to

to accept some degree of responsibility for the general levels of employment and prices

Fiscal policy refers to the

manipulation of government spending and taxes to stabilize domestic output, employment, and the price level

Discretionary fiscal policy refers to changes in

changes in taxes and government expenditures made by Congress to stabilize the economy

Discretionary fiscal policy is so named because it

involves specific changes in T and G undertaken expressly for stabilization at the option of Congress

Discretionary fiscal policy will stabilize the economy most when

deficits are incurred during recessions and surpluses during inflation

Countercyclical discretionary fiscal policy calls for

deficits during recessions and surpluses during periods of demand-pull inflation

Expansionary fiscal policy is so named because

because it is designed to expand real GDP

Contractionary fiscal policy is so named because

is aimed at reducing aggregate demand and thus achieving price stability