What Has Contributed to the Decline in Discretionary Outlays by the Federal

question 14

Essay

What has contributed to the decline in discretionary outlays by the federal government?

---

Definitions:

Discretionary Fiscal Policy

Government policies that involve changes in taxation and spending to influence the economy, used to manage economic cycles.

Countercyclical

An economic or fiscal policy or measure that moves in opposition to the business cycle, designed to reduce the volatility of the economic cycle by decreasing spending in booms and increasing it in recessions.

Built-In Stabilizers

Economic policies and programs designed to automatically reduce volatility in the economy without the need for specific action by policymakers.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in a country in real terms.