What is the difference between discretionary fiscal policy and automatic stabilizers?

Question

How are federal budget surpluses and deficits affected by the business cycle?

Answer 1

That is a deep quesiton. Discretionary fiscal policy alows humans to control expenditure via the government, and automatic stabilizers are controls that have been established.

Budget deficits are not particularly affected by the business cycle, they are affected by taxation and spending.

Answer 2

Automatic Fiscal Policy

Answer 3

Theory predicts that a increase/decrease in the government deficit tends to increase/decrease economic activity. When the National income declines in a recession tax receipts falls, and social welfare spending increases and the reverse during booms. These changes produces an increase in the deficit during recessions and a decrease during booms so acts as an automatic damping of the business cycle (automatic stabilizers). If the deficit is changed by new tax or spending laws it is called discretionary fiscal policy

Answer 4

an computerized financial coverage is a coverage that relies upon on old rules to alter the financial gadget. The dissolution of monopolies is an esample of computerized using fact monopolizing an marketplace is, frequently, unlawful. the only industries that it fairly is criminal in is utilities (water and such). Discrescionary financial coverage is whilst the government makes a clean regulation to alter the financial gadget. Tax will enhance/decreases are a primary occasion of this, as they the two choose legislations to pass into consequence. wish it enables.