Built-in Stability a.Explain the difference between discretionary and non-discretionary fiscal policy, b.Explain the key relationships that supports the built-in stabilizer, c.Explain thoroughly how it works to reduce inflation d.Explain thoroughly how it works to reduce recession e.Explain why the presence of the built-instabilizer is important to managing the macro economy.

Question
  1. Built-in Stability

a.Explain the difference between discretionary and non-discretionary fiscal policy,

b.Explain the key relationships that supports the built-in stabilizer,

c.Explain thoroughly how it works to reduce inflation

d.Explain thoroughly how it works to reduce recession

e.Explain why the presence of the built-instabilizer is important to managing the macro economy.

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