Opponents of active stabilization policy
a. advocate a monetary policy designed to offset changes in the unemployment rate.
b. argue that fiscal policy is unable to change aggregate demand or aggregate supply.
c. believe that the political process creates lags in the implementation of fiscal policy.
d. None of the above is correct.
c
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Which of the following is the best definition of openness?
A. The average of imports expressed as a share of GDP. B. The average of goods traded in markets expressed as a share of GDP. C. The average of imports and exports expressed as a share of GDP. D. The average trade balance expressed as a share of GDP. E. The average of exports expressed as a share of GDP.
If a country's exports are worth $5 billion and its imports are worth $3.9 billion, the country experiences a ________
A) trade surplus B) budget deficit C) trade deficit D) budget surplus
The buyer's reservation price for a particular good or service is the:
A. same as the market price. B. largest price the buyer would be willing to pay for it. C. smallest price the buyer would be willing to pay for it. D. price the buyer must pay to ensure he or she gets it.
Suppose that in 2020 the average citizen's federal tax bill is $14,888 per person, and total federal spending is $13,997 per person. In 2020, the federal government will have
a. a per person budget surplus of $891. b. a per person budget deficit of $891. c. horizontal equity. d. vertical equity.