Discretionary Fiscal Policy: Definition & Examples


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question 1 of 3

Discretionary fiscal policy are changes made when?

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1. What are the two main actions of the government when making changes to discretionary fiscal policy?

2. When the government increases taxes it is referred to as what?

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About This Quiz & Worksheet

Review how the government uses discretionary fiscal policy with this quiz. You will also need to know when the government makes changes to this form of policy.

Quiz & Worksheet Goals

You should be prepared to answer questions about:

  • When discretionary fiscal policy changes are made
  • The government raising taxes
  • Taxes being lowered

Skills Practiced

This quiz also helps you develop these skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on discretionary fiscal policy
  • Information recall - access the knowledge you've gained regarding how the government makes changes to fiscal policy
  • Knowledge application - use your knowledge to answer questions about where spending is greatest in discretionary fiscal policy

Additional Learning

Build on what you already know about this subject by studying the lesson titled Discretionary Fiscal Policy: Definition & Examples. Information covered by this lesson includes:

  • The definition of discretionary fiscal policy
  • How Congress and the President are involved with the government's budget
  • Effects of fiscal policy on the economy