Determine whether the following government actions are discretionary or nondiscretionary spending. (a) Spending on unemployment benefits increase when more people become unemployed during a recession. (b) Congress decides to increase taxes during a period of expansion. (c) Congress votes to expand spending on infrastructure. (d) During a recession households often experience a decrease in income, moving them into a lower tax bracket.
Determine whether the following government actions are discretionary or nondiscretionary spending. (a) Spending on unemployment benefits increase when more people become unemployed during a recession. (b) Congress decides to increase taxes during a period of expansion. (c) Congress votes to expand spending on infrastructure. (d) During a recession households often experience a decrease in income, moving them into a lower tax bracket.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Determine whether the following government actions are discretionary or nondiscretionary spending.
(a) Spending on unemployment benefits increase when more people become unemployed during a recession.
(b) Congress decides to increase taxes during a period of expansion.
(c) Congress votes to expand spending on infrastructure.
(d) During a recession households often experience a decrease in income, moving them into a lower tax bracket.
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