Explain How Tax Revenue Can Be Both an Automatic Fiscal

question 220

Essay

Explain how tax revenue can be both an automatic fiscal policy and a discretionary fiscal policy.

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Definitions:

Receiving Report

A document used to confirm the receipt of goods delivered, typically matched against the purchase order to ensure accuracy.

Purchase Order

The document authorizing the purchase of inventory from an approved vendor.

Sales Invoice

A document issued by a seller to a buyer, detailing a transaction and requesting payment, itemizing the products or services provided and their prices.

Work in Process

Inventory items that are currently in the production process but are not yet completed products.