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Discretionary policy is also used when there are changes in Government policies that deal with spending and taxing in the prior year to help stabilize the economy, it affects output, employment, and aggregate demand. Monetary and fiscal policies are discretionary tools (O’Sullivan, Scheffrin, & Perez, 2008).
Tools of Fiscal Policy: goals and objectives
Fiscal policy involves the use of government spending and taxes to influences economic growth, output and employment, as well as the level and growth of aggregate demand. These are all tools of the fiscal policy (O’Sullivan et.al, 2008). The president and congress rule on the policy before it is put into place...
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