The use of discretionary fiscal policy is hampered by
i. difficulty of estimating the level of potential GDP.
ii. lack of accuracy of economic forecasts.
iii. the small impact tax cuts and increases in government expenditure have on aggregate demand.
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
D
You might also like to view...
The GDP of a country can be derived by summing the:
a. expenditures on final goods and services produced domestically during the year. b. payments to employees and owners of capital resources and then subtracting depreciation and indirect business taxes. c. market value of all goods and services produced domestically during the period and then subtracting net exports from that figure. d. income payments to the resource suppliers and net exports.
A price ceiling set above the equilibrium price causes a surplus in the market
a. True b. False Indicate whether the statement is true or false
Wage elasticity of labor supply is a term referring to the
a. percentage change in wages demanded divided by the percentage change in wages supplied. b. percentage change in wages supplied divided by the percentage change in wages demanded. c. percentage change in wages divided by the percentage change in hours worked. d. percentage change in hours worked divided by the percentage change in wages.
The "implicit debt" accompanying the Social Security and Medicare programs is
a. substantially greater than the national debt. b. approximately equal to the national debt. c. about half the size of the national debt. d. about one tenth the size of the national debt.