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Currently, the General Agreement About a Proposed Fiscal Policy Is

Question 170

Multiple Choice

Currently, the general agreement about a proposed fiscal policy is that:


A) it should be evaluated for its potential positive and negative impacts on long-run productivity growth.
B) only the short -run impact of it on the economy should be evaluated.
C) the politicians should not be worried about either the short-run nor long-run effects of a fiscal policy.
D) it should only be used when the economy is experiencing an inflationary and not a recessionary gap.

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