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Estrella Moran
on Nov 11, 2024

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Discretionary fiscal policy works by shifting the aggregate demand curve.

Fiscal Policy

A government's strategy for managing its budget, including taxation and spending decisions, to influence the economy.

Aggregate Demand Curve

A graphical representation showing the overall demand for goods and services in an economy at various price levels.

Discretionary Fiscal Policy

Fiscal policy based on judgment by policymakers rather than set by predetermined rules, aiming to influence demand through changing government spending and taxation.

  • Describe the process through which discretionary fiscal policy impacts the shifts in aggregate demand and supply curves.
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Bryan RoblesNov 16, 2024
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