Macroeconomics

signments The economy is in a boom and the inflationary gap is large. Homework Describe the discretionary and automatic fiscal policy actions that might occur. Discretionary fiscal policy that might occur is ce a Quiz/Te Automatic fiscal policy that might occur is. O A. an increase in transfer payments and a fall in taxes with no interference by Parliament an increase in government expenditure and a cut in taxes by a decision of Parliament O B. a decrease in government expenditure and an increase in taxes by a decision of Parliament, a decrease in transfer payments and an increase in taxes with no interference by Parliament O C. a decrease in transfer payments and an increase in taxes with no interference by Parliament; a decrease in government expenditure and an increase in taxes by a decision of Parliament O D. an increase in government expenditure and a cut in taxes by a decision of Parliament; Click to select your