_____________________ are a form of tax and spending rules that can affect aggregate demand in the economy without any additional change in legislation. Standardized employment budgets Discretionary fiscal policies Automatic stabilizers Budget expenditures

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Fiscal policy.

Fiscal policy involves changes in taxes or spending (government budget) to achieve economic goals. Changing the corporate tax rate would be an example of fiscal policy. fiscal policy: changes in Federal government spending or tax rates for the purpose of influencing the macroeconomy.

Discretionary Fiscal Policy: government spending and tax changes enacted at the time of the problem to alter the economy. Nondiscretionary Fiscal Policy: that set of policies that are built into the system to stabilize the economy (sometimes called automatic stabilizers).

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