top of page

Economics explained


Macroeconomic policies

Automatic stabilisers and discretionary fiscal policy

Automatic stabilisers and discretionary fiscal policy

The secret to scoring awesome grades in economics is to have corresponding awesome notes.
A common pitfall for students is to lose themselves in a sea of notes: personal notes, teacher notes, online notes textbooks, etc... This happens when one has too many sources to revise from! Why not solve this problem by having one reliable source of notes? This is where we can help.
What makes TooLazyToStudy notes different?
Our notes:
  • are clear and concise and relevant
  • is set in an engaging template to facilitate memorisation
  • cover all the important topics in the O level, AS level and A level syllabus
  • are editable, feel free to make additions or to rephrase sentences in your own words!

    Looking for live explanations of these notes? Enrol now for FREE tuition!

Automatic stabilisers

A government can also allow automatic stabilisers to influence aggregate demand.

Automatic stabilisers are forms of government spending and taxation that change, without any deliberate government action, to offset fluctuations in GDP.

Discretionary fiscal policy

Automatic stabilisers cannot prevent fluctuations. They merely reduce their magnitude.

If there is a fundamental disequilibrium in the economy or substantial fluctuations in other injections and withdrawals, the government may choose to alter the level of government expenditure or the rates of taxation.

Deliberate changes in government spending and taxation is known as discretionary fiscal policy.

bottom of page