One drawback in using fiscal policy as a stabilization tool is that fiscal policy:
A. is not useful for dealing with prolonged episodes of recession.
B. effects are frequently offset by automatic stabilizers.
C. affects potential output as well as aggregate expenditure.
D. is too flexible to use to close output gaps.
Answer: C
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Globalization decreases the interconnectedness between countries
a. True b. False Indicate whether the statement is true or false
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