Classify the actions below as either discretionary spending or an automatic stabilizer. place each item into one of the two bins.

Discretionary spending is termed as government spending which is by means of fiscal policy.

Economic stabilizers are termed as policies which offsets the fluctuation in the economy without government intervention.

Discretionary spending.

The government out taxes to stimulate consumer spending.

There is a law which is enacted that increases Medicare coverage.

A bill is passed to increase unemployment benefits

Government increases the rate of tax to prevent inflation

Automatic stabilizers

An increase in a number of layoffs increases government spending on unemployment benefits.

Reduction in tax revenue that results from recession reducing personal cooperate and income profits.

Due to increase in applicants leads to increase in government spending.

Cooperate and personal income increases tax payments while economic growth increases.