Question

_____ refer(s) to fiscal policy that is caused by the deliberate action by policy makers rather than rules. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices Automatic stabilizers A cyclically adjusted budget balance Discretionary fiscal policy Intentional expand/contract controls

Answer 1

Answer: Discretionary fiscal policy

Explanation: Discretionary fiscal policy is a tool of fiscal policy used by the government to expand or shrink the economy as per the need. While performing such policy the government  changes the level of tax collection or the amount of expenditure done on the economy.

It is a deliberate action by the policy makers and do not automatically accelerates while during inflation or deflation.