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?

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Definitions:

Stimulus Strength

The intensity level of a stimulus which affects the magnitude and nature of the response in a biological system.

Action Potentials

Rapid, temporary changes in the electrical membrane potential of cells, which are fundamental in the conduction of impulses along nerves and muscle fibers.

Frequency

In physics, it refers to the number of occurrences of a repeating event per unit of time, often used in the context of waves.

Repolarization

The process by which a neuron or muscle cell returns to its resting negative charge after depolarization.