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Fiscal Policy

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Explain non-discretionary fiscal policy.

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Non-discretionary fiscal policy (automatic stabilizers or built-in).

Non-discretionary fiscal policy refers to deliberate manipulation of government spending, taxation, and purchases in order to promote macroeconomic goals. These are primarily for income maintenance purpose and are usually rarely changed. They include social security, welfare and unemployment compensation, economic growth and price stability.

Non- discretionary fiscal policy is built into the structure of federal taxes and ...

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