Multiple Choice
One reason the government enacts fiscal policy instead of waiting for the economy to correct itself is the automatic adjustment:
A) can take a very long time.
B) means a lower level of potential GDP.
C) will cause permanent inflation.
D) is generally not supported by government officials.
Correct Answer:

Verified
Correct Answer:
Verified
Q14: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6625/.jpg" alt=" If the economy
Q15: Fiscal policy can:<br>A) have real effects on
Q16: A budget deficit is the:<br>A) amount of
Q17: If the government decreases the income tax
Q18: If the government were to increase taxes,
Q21: What is a benefit of giving the
Q22: We use the term expansionary fiscal policy
Q23: When the government enacts fiscal policy, it:<br>A)
Q24: One of the main difficulties with implementing
Q48: Government decisions about the level of taxation