Discuss the Difference Between Automatic Stabilizers and Discretionary Fiscal Policies

question 69

Essay

Discuss the difference between automatic stabilizers and discretionary fiscal policies.

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Definitions:

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific time period.

Elasticity

In economics, elasticity measures how much the quantity demanded or supplied changes in response to a change in price or other factors.

Wage Income

Earnings received by an individual from employment or labor.

Public Assistance

Government programs designed to provide financial aid to individuals or groups who are unable to support themselves.