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Basic Question 10 of 11
A change in fiscal policy that is triggered by the state of the economy is ______.
B. automatic fiscal policy
C. discretionary fiscal policy
A. automatic stabilizers
B. automatic fiscal policy
C. discretionary fiscal policy
User Contributed Comments 3
| User | Comment |
|---|---|
| schweitzdm | What's an example of one? |
| tangyjab | Why not A? |
| Chidinmaiw | tangyjab: the question asked for the change in fiscal policy. An automatic stabilizer is the result of an economic expansion/ recession. For instance if the economy was in a expansion meaning more people have more income from their wages, this will also mean that the income taxes received will increase due to the increase in people's wages. This was not the result of a fiscal policy intervention. Hope that cleared things up for you. |
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Learning Outcome Statements
explain the implementation of fiscal policy and difficulties of implementation as well as whether a fiscal policy is expansionary or contractionary
CFA® 2024 Level I Curriculum, Volume 1, Module 3.