Discretionary fiscal policy is handicapped by
A) lawmaking time lags, induced taxes, and automatic stabilizers.
B) lawmaking time lags, estimation of potential GDP, and economic forecasting.
C) economic forecasting, lawmaking time lags, and induced taxes.
D) automatic stabilizers, lawmaking time lags, and potential GDP estimation.
E) automatic stabilizers, the multipliers, and potential GDP estimation.
B
You might also like to view...
Approaching a business cycle trough we find actual real GDP ________ natural real GDP, so inflation is ________
A) below, slowing down B) below, speeding up C) above, slowing down D) above, speeding up
If a demand shock causes the economy to move to a real GDP level that is below its full employment level, then
a. we refer to this as a positive demand shock. b. the economy will remain at this point in the long run. c. the AS curve will adjust in the long run until the economy returns to full employment. d. the AD curve will move back to its original position in the long run. e. the unemployment rate will decline.
A _____ is a certificate of indebtedness and a _____ is a claim to partial ownership in a firm
Fill in the blank(s) with correct word
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.