Classify the following items as automatic fiscal policy actions, discretionary fiscal policy actions, or neither. An

Question:

Classify the following items as automatic fiscal policy actions, discretionary fiscal policy actions, or neither.

• An increase in expenditure on homeland security

• An increase in unemployment benefits paid during a recession

• Decreased expenditures on national defense during peace time

• An increase in Medicaid expenditure brought about by a flu epidemic

• A cut in farm subsidies

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Essential Foundations Of Economics

ISBN: 9781786633255

8th Edition

Authors: Robin Bade, Michael Parkin

Question Posted: