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What is Discretionary Fiscal Policy

Discrete changes in tax and public spending over and above what would result from the impact of the economic cycle through the operation of the automatic stabilisers. This can include fiscal measures taken to lower inflation, stabilise the business cycle or reduce unemployment.

Crown Copyright. Material taken from HM-Treasury. Reproduced under the terms and conditions of the Click-Use Licence.

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Term created / updated 2007-03-20 22:44:43

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