Answer to Question #76066 in Macroeconomics for rajvinder
The economy is in a recession and the recessionary gap is large.
Describe the discretionary and automatic fiscal policy actions that might occur. Discretionary fiscal policy that might occur is ___
Discretionary fiscal policy that might occur is non-mandatory changes in taxation, spending, or other fiscal activities by a government in response to economic events or changes in economic conditions. Discretionary fiscal policy implies government actions above and beyond existing fiscal policies, and often occurs in periods of recession or economic turbulence. Source: http://www.businessdictionary.com/definition/Discretionary-Fiscal-Policy.html