fiscal policy HELP (1 Viewer)

[somecooldude]

do we need to know about discretionary and non-discretionary changes to fiscal policy. also do we need to know about automatic stabilisers?

they arent listed in the syllabus but then our teacher taught us about them.. what you think?

 

[Rafy]

yes. they are essential aspects of Fiscal policy.

It would fall under the syllabus dot point:

"Federal government budgets and budget outcomes"

 

[Freaky]

Somone mind explaining what they are...

 

[Rafy]

- Discretionary
This is deliberate government minipulation of governemnt spending and/or taxes to affect the budget outcome (Structual changes to the budget)

- Non-Discretionary

These are cyclical influences on the budget outcome. (i.e Periods of economic growth contributing to higher tax revenue by higher comany tax reciepts and increased incomes etc; bascially from changes in economic activity) Automatic stabilisers.(Their effect is self-explanitory) are a result of Unemployment benefits and progressive tax systems.