The Difference Between Automatic Fiscal Policy and Discretionary Fiscal Policy

question 45

Multiple Choice

The difference between automatic fiscal policy and discretionary fiscal policy is that

• A)the government initiates automatic fiscal policy.
• B)the Parliament must pass laws implementing discretionary fiscal policy.
• C)the Parliament has nothing to do with discretionary fiscal policy.
• D)the Reserve Bank initiates discretionary fiscal policy.

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Definitions:

Accomplish Something

To successfully complete or achieve a task, goal, or objective.

Expected

Anticipated or considered likely to happen based on current information or trends.

Great Performance

The act of exceeding standard expectations in any activity or job through exceptional skill, effort, or productivity, often celebrated or rewarded in various contexts.

Problem Behavior

Actions or conducts that are socially unacceptable, disruptive, or harmful, often requiring intervention or correction.