c. elements of fiscal policy that automatically change in value as national income changes. d. government spending at the discretion of the president and the Congress. a) discretionary fiscal policy works with a lagged effect. The phrase expansionary bias refers to the fact that. The government uses these two tools to monitor and influence the economy. b. government spending at the discretion of the Congress. Fiscal policy, measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. a. government spending at the discretion of the president. Discretionary fiscal policy refers to. Fiscal measures are frequently used in tandem with monetary policy to achieve certain goals. ? Find out how the policies adopted have â¦ It refers to sudden and not previously announced or predicted measures. changes in taxes and government expenditures made by Congress to stabilize the economy. Fiscal policy refers to the: deliberate changes in government spending and taxes to stabilize domestic output, employment, and the price level. If the crowding-out effect is strong, how will the potency of discretionary fiscal policy be affected? Discretionarity refers to arbitrary impositions taken without announcements or even legal approvals. The amount by which federal tax revenues exceed federal government expenditures during a particular year is the A. budget surplus. Fiscal Policy. Discretionary fiscal policy refers to: ? The fiscal policy Fiscal Policy Fiscal Policy refers to the budgetary policy of the government, which involves the government manipulating its level of spending and tax rates within the economy. Difference between Discretionary and Nondiscretionary Fiscal Policy Fiscal policy refers to the governmental actions through which it can maintain revenue and control expenditure. It will make fiscal policy less potent. b) politicians are more willing to lower taxes and increase spending than they are to do the opposite. In terms of fiscal policy, it refers to either government revenue (taxes) or expenditure (spending). the changes in taxes and transfers that occur as GDP changes. the authority that the President has to change personal income tax rates. Fiscal policy refers to the use of government spending and tax policies to influence macroeconomic conditions, including aggregate demand, employment, inflation and economic growth. c) policymakers tend to overestimate the size of the recessionary gap. Countercyclical discretionary fiscal policy calls for: deficits during recessions and surpluses during periods of demand-pull inflation. It can be of two types, discretionary and nondiscretionary fiscal policy (Carrere & Melo, 2008). 2. ? any change in government spending or taxes that destabilizes the economy. Expansionary fiscal policy is so named because it: Fiscal policy is the use of government spending and tax policy to influence the path of the economy over time. In macroeconomics, discretionary policy is an economic policy based on the ad hoc judgment of policymakers as opposed to policy set by predetermined rules. Fiscal policy refers to the use of the government budget to affect the economy including government spending and levied taxes. Learn more about fiscal policy in this article. The United States has a much higher national debt as a percentage of GDP compared to other industrialized nations. ? Discretionary fiscal policy refers to changes in taxes and government expenditures made by Congress to stabilize the economy.