What are cyclical or non-discretionary changes in economics?

Cyclical changes or non-discretionary changes in economics refer to fluctuations that occur as a result of regular and predictable patterns in the economy, often tied to the business cycle. These changes are intrinsically linked to changes in economic conditions, such as expansions and recessions, and they impact various aspects of government policy and economic performance.

During periods of economic growth, for example, governments may see increased tax revenues and can afford to spend more on public services. Conversely, during a recession, tax revenues decline, leading to budgetary constraints and potentially necessitating cuts in services or increased borrowing. Thus, changes associated with these economic conditions influence government actions without the need for new legislative approval, as they stem directly from the state of the economy rather than deliberate policy choices.

In contrast, options that involve requirements for legislative approval or only address local governments do not capture the broader, systemic nature of cyclical changes. Moreover, changes not related to economic conditions would fall outside the domain of cyclical changes and would not accurately reflect the interconnectedness of economic activity and government responses.