Economics Aggregate Demand And Supply Questions
Discretionary fiscal policy refers to the deliberate changes in government spending and taxation by policymakers in order to influence the overall level of aggregate demand in the economy. It involves the use of fiscal tools, such as changes in government spending on infrastructure projects or social programs, and adjustments in tax rates, to stimulate or restrain economic activity. The purpose of discretionary fiscal policy is to address economic fluctuations, stabilize the economy, and promote economic growth.