Examples of discretionary in the following topics:
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- Discretionary policies refer to subjective actions taken in response to changes in the economy.
- For much of the 20th century, governments adopted discretionary policies to correct the business cycle.
- A discretionary policy is supported because it allows policymakers to respond quickly to events.
- This can create compounding issues related to the discretionary policy enacted.
- A compromise between strict discretionary and strict rule-based policy is to grant discretionary power to an independent body.
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- Automatic stabilizers and discretionary policy differ in terms of timing of implementation and what each approach sets out to achieve.
- In practice, most policy changes are discretionary in nature.
- With discretionary policy there is a significant time lag.
- Discretionary policies can target other, specific areas of the economy.
- Discretionary policies can address failings of the economy that are not strictly tied to aggregate demand.
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- Discretionary fiscal policy relies on getting the timing right, but this can be difficult to determine at the time decisions must be made.
- A nation can respond to economic fluctuations through automatic stabilizers or through discretionary policy.
- With discretionary fiscal policy, timing plays a very significant role.
- Discretionary policy often requires that a set of laws must be passed through a legislature.
- Once the discretionary program is in place, the next step is to measure its effectiveness.
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- Discretionary income is disposable income minus all payments that are necessary to meet current bills.
- Discretionary income = Gross income - taxes - all compelled payments (bills)
- Disposable income is often incorrectly used to denote discretionary income.
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- Monetary policy uses a variety of discretionary tools to control one or both of these to influence outcomes like economic growth, inflation, exchange rates with other currencies, and unemployment.
- Assess the value of discretionary expansionary monetary policy and the associated shortcomings.
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- Unlike the cyclical budget deficit, a structural deficit is the result of discretionary, not automatic, fiscal policy.
- While automatic stabilizers don't actually shift the aggregate demand curve (because transfer payments and taxes are already built into aggregate demand), discretionary fiscal policy can shift the aggregate demand curve.