Which is not an explicit short-run goal of discretionary fiscal policy?


Question: Which is not an explicit short-run goal of discretionary fiscal policy?

Discretionary fiscal policy is aimed at stabilizing the economy by manipulating government revenue and expenditures to achieve macroeconomic objectives like full employment, price stability, and economic growth. Explicit short-run goals typically include mitigating job losses and output reductions resulting from negative business cycle shocks. However, an example of what is not an explicit short-run goal of discretionary fiscal policy would be altering the long-term structural components of the economy, such as changing the economy's potential output or modifying the long-term rate of unemployment. These are generally considered long-term goals and are not the immediate focus of discretionary fiscal policy actions.

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