Why is it difficult to implement fiscal policies?
What will be an ideal response?
One reason why fiscal policies are difficult to implement is the presence of lags, which arise due to the time involved in recognizing and responding to economic changes and the time needed for the policies to operate. A second reason is economists have incomplete information about all aspects of an economy, which limits their abilities to accurately predict economic responses to fiscal policies.
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One trend in labor markets is:
A. a slowdown in real wage growth in the United States since 1973. B. decreasing wage inequality in the United States. C. a decrease in average real wages in the United States and other industrial countries. D. weak rates of job creation in the United States since 1980.
As long as the marginal utility per dollar from pizza is greater than the marginal utility per dollar from soda, then to maximize utility a consumer will buy
A) more soda to equalize the marginal utility per dollar between soda and pizza. B) less pizza and less soda. C) more pizza and less soda. D) equal amounts of pizza and soda.
Inventory reductions are a signal indicating that
A. the economy is close to disaster. B. the Dow Jones Industrial Average will fall. C. manufacturers need to increase production. D. producers need to lower prices.
From 1960 to 1980, federal government spending on national defense _____
a. declined from about half to less than one quarter of all expenditures b. declined from one-third to less than one quarter of all expenditures c. increased from about half to nearly 60 percent of all expenditures d. increased from about one quarter to nearly one-half of all expenditures