Multiple Choice
One drawback in using fiscal policy as a stabilization tool is that fiscal policy:
A) affects potential output as well as planned aggregate expenditure.
B) effects are frequently offset by automatic stabilizers.
C) is too flexible to use to close output gaps.
D) is not useful for dealing with prolonged episodes of recession.
Correct Answer:
Verified
Correct Answer:
Verified
Q23: A fiscal policy action to close a
Q24: Stabilization policies are government policies used to
Q25: Provisions in the law that automatically increase
Q26: Planned investment may differ from actual investment
Q27: A fiscal policy action to close an
Q29: Data on after-tax income and consumption
Q30: Expansionary policies are government stabilization policies intended
Q31: The recession of 2007-2009 happened in part
Q32: The income-expenditure multiplier arises because one person's
Q33: In Macroland, autonomous consumption equals 100, the