Question

An example of non discretionary fiscal policy would be

Answer 1

Non-discretionary fiscal policy, as the word suggests, is not at the discretion of the government. For example, progressive taxation push people into higher income tax brackets during boom times, substantially increasing their tax bill and reducing government budget deficits (or increasing government surpluses).

Answer 2

Example include change in government spending and change in taxes levied. Nondiscretionary fiscal policy is automatic which include the automatic stabilizers of increasing net taxes in an expansion and decreasing net taxes during a recession.

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