Question

Suppose the government purposely changes the economy's cyclically adjusted budget from a deficit of 0 percent of real gdp to a deficit of 3 percent of real gdp. the government is engaging in a(n)

Answer 1

Discretionary fiscal policy.

Compared to automatic stabilizers, if the government is actively changing the deficit or policy measures that contribute to it, then it would be a deliberate act which is basically the discretionary fiscal policy.