The phrase expansionary bias refers to the fact that. In macroeconomics, discretionary policy is an economic policy based on the ad hoc judgment of policymakers as opposed to policy set by predetermined rules. The government uses these two tools to monitor and influence the economy. If the crowding-out effect is strong, how will the potency of discretionary fiscal policy be affected? Expansionary fiscal policy is so named because it: It can be of two types, discretionary and nondiscretionary fiscal policy (Carrere & Melo, 2008). Find out how the policies adopted have â¦ a) discretionary fiscal policy works with a lagged effect. Fiscal Policy. Discretionarity refers to arbitrary impositions taken without announcements or even legal approvals. b. government spending at the discretion of the Congress. Countercyclical discretionary fiscal policy calls for: deficits during recessions and surpluses during periods of demand-pull inflation. c) policymakers tend to overestimate the size of the recessionary gap. Fiscal measures are frequently used in tandem with monetary policy to achieve certain goals. changes in taxes and government expenditures made by Congress to stabilize the economy. ? Learn more about fiscal policy in this article. In terms of fiscal policy, it refers to either government revenue (taxes) or expenditure (spending). Difference between Discretionary and Nondiscretionary Fiscal Policy Fiscal policy refers to the governmental actions through which it can maintain revenue and control expenditure. the authority that the President has to change personal income tax rates. any change in government spending or taxes that destabilizes the economy. ? 2. the changes in taxes and transfers that occur as GDP changes. Discretionary fiscal policy refers to. b) politicians are more willing to lower taxes and increase spending than they are to do the opposite. The United States has a much higher national debt as a percentage of GDP compared to other industrialized nations. Fiscal policy refers to the use of government spending and tax policies to influence macroeconomic conditions, including aggregate demand, employment, inflation and economic growth. Fiscal policy refers to the use of the government budget to affect the economy including government spending and levied taxes. It will make fiscal policy less potent. The fiscal policy Fiscal Policy Fiscal Policy refers to the budgetary policy of the government, which involves the government manipulating its level of spending and tax rates within the economy. Fiscal policy, measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. Discretionary fiscal policy refers to: ? Fiscal policy refers to the: deliberate changes in government spending and taxes to stabilize domestic output, employment, and the price level. Discretionary fiscal policy refers to changes in taxes and government expenditures made by Congress to stabilize the economy. c. elements of fiscal policy that automatically change in value as national income changes. d. government spending at the discretion of the president and the Congress. Fiscal policy is the use of government spending and tax policy to influence the path of the economy over time. ? a. government spending at the discretion of the president. The amount by which federal tax revenues exceed federal government expenditures during a particular year is the A. budget surplus. It refers to sudden and not previously announced or predicted measures.