Multiple Choice
According to Buchanan and Wagner,why is there a political bias toward expansionary fiscal policy rather than contractionary fiscal policy?
A) In a democracy,expansionary fiscal policy prescriptions are more politically popular than are the policy prescriptions associated with contractionary fiscal policy.
B) In a democracy,contractionary fiscal policy prescriptions are more policitally popular than are the policy prescriptions associated with expansionary fiscal policy.
C) They assert that empirical evidence has shown that Keynesian fiscal policy prescriptions have been successful at closing recessionary gaps,but not inflationary gaps.
D) They assert that empirical evidence has shown that Keynesian fiscal policy prescriptions have been successful at closing inflationary gaps,but not recessioinary gaps.
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q7: Fiscal policy refers to<br>A) changes in the
Q8: When a decrease in one or more
Q9: Between the data lag and the legislative
Q10: If there is complete crowding out,the change
Q11: Which of the following is not an
Q13: If the economy is on the downward-sloping
Q14: Income tax revenues rise as income tax
Q15: The deficit that exists when the economy
Q16: Suppose government spending rises by $120 billion.It
Q17: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6439/.jpg" alt=" -Refer to Exhibit