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What Is Automatic Fiscal Policy? How Does It Affect the Budget

question 83

Essay

What is automatic fiscal policy? How does it affect the budget deficit and/or budget surplus during a recession and during an expansion?


Definitions:

Mean Age

The average age of individuals in a particular group, calculated by summing their ages and dividing by the number of individuals.

Psychosocial Task

A challenge or duty that relates to an individual’s psychological development in, and interaction with, a social environment.

Identity

The qualities, beliefs, personality, appearance, and culture that make a person or group who they are.

Erikson

A psychologist known for his theory on the psychosocial development of human beings.

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