Outcome: Discretionary and Automatic Fiscal Policy

What you’ll learn to do: differentiate between discretionary and automatic fiscal policy

In this section, you will look at the fiscal policy decisions that governments make when trying to stabilize the economy.

The specific things you’ll learn in this section include:

  • Define Automatic Stabilization Tools
  • Define discretionary fiscal policy
  • Differentiate between structural and cylical budget balance


The learning activities for this section include:

  • Reading: Fiscal Policy and Stabilizers
  • Reading: Counterbalancing Recession and Boom
  • Reading: The Standardized Employment Deficit or Surplus
  • Self Check: Discretionary and Automatic Fiscal Policy

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.