Discretionary fiscal policy and automatic fiscal policy

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Q. Briefly explain the current (2012) Discretionary Fiscal Policies that are being used by the Federal Government to try and promote a recovery from the recession.

What was the reported budget deficit of the Federal Government of the U.S. for fiscal year 2012? ( The Federal Government's fiscal year runs from October through September) How does the Federal Government finance this deficit spending?(that is, where does it get the money to spend when it runs a deficit?)

Explain the difference between Discretionary Fiscal Policy and Automatic Fiscal policy (built-in stabilizers). Provide an example of each.

Reference no: EM137807

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