Policies

Question 1

Discretionary fiscal policy

Answer 1

Government use discretion-ability to make decisions to change tax and spending

Question 2

Automatic stabilisers

Answer 2

When tax revenue and public expenditure change without government intervention to keep economy stable.

e.g during recession where there is unemployment, benefits paid will automatically increase without gov changing

Question 3

Direct controls

Answer 3

Any policies that work outside market forces, that tightly control part of economy. e.g minimum wage