The deliberate use of changes in government spending and/or taxes to alter AD and stabilise the business cycle is called:Group of answer choicescontinuous fiscal policy.monetary policy.important international policy.discretionary fiscal policy.

Changes that do not occur automatically but rather are made at the option of the federal government are known as (one word) fiscal policy.

What is the term for the idea that the government should guide the economy to full employment by calculated changes to spending and taxation?Multiple choice question.Crowding out policyCyclical fiscal policyCountercyclical fiscal policyMonetary policy

Fiscal policy is a mechanism the government employs to influence the economy. Fiscal policy is based onMultiple Choicethe government's taxing and spending decisions.the money supply.the importance of maintaining a 12-month (fiscal year) economic cycle.the projections of the Federal Reserve Board.the idea that a balanced budget is the key to a healthy economy.

How does the government typically change fiscal policy to try to keep the economy stable during a period of rapid economic growth?A.Lowering taxes on businesses and individualsB.Increasing the amount of money in circulationC.Decreasing the amount of money in circulationD.Increasing taxes on businesses and individualsSUBMITarrow_backPREVIOUS

Discretionary fiscal policy refers toMultiple Choicethe authority that the president has to change personal income tax rates.intentional changes in taxes and government expenditures made by Congress to stabilize the economy.the changes in taxes and transfers that occur as GDP changes.any change in government spending or taxes that destabilizes the economy.