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
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Related Book For
Essential Foundations Of Economics
ISBN: 9781786633255
8th Edition
Authors: Robin Bade, Michael Parkin
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