Multiple Choice
Which of the following is NOT a weakness of fiscal policy?
A) Time lags in fiscal policy are long and variable.
B) Fiscal policy works only during periods of stagflation.
C) Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income.
D) Fiscal policy might have undesirable long-term effects on short-run aggregate supply.
Correct Answer:

Verified
Correct Answer:
Verified
Q99: Which of the following best describes the
Q100: Assume autonomous net taxes fall by $300,
Q101: Suppose the economy is already producing at
Q102: Exhibit 11-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 11-2
Q103: Suppose transfer payments and autonomous taxes both
Q105: Suppose the MPC equals 0.75 and G
Q106: Assume autonomous net taxes rise by $500,
Q107: Assume that initially G is $100 and
Q108: Which of the following did Keynes think
Q109: Assume autonomous net taxes fall by $300,