The Great Recession of 2008-09 was an ideal case for fiscal policy because:
A. a healthy financial sector improves the timeliness of expansionary fiscal policy.
B. targeting and timeliness are less important when a recession is the result of the bursting of an asset bubble.
C. the most-easy-to-target sectors were those that were the most affected by unemployment.
D. targeting and timeliness are less important when a recession is very severe and lasts a long time.
Answer: D. targeting and timeliness are less important when a recession is very severe and lasts a long time.
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The increase in real GDP per hour of labor that results from an increase in capital per hour of labor ______.
A. is constant and independent of the quantity of capital B. is larger at a small quantity of capital than at a large quantity of capital C. is smaller at a small quantity of capital than at a large quantity of capital D. decreases as technology advances
Which price in Figure 4-21 is equilibrium?
A. P1 B. P2 C. P3 D. There is no equilibrium price in the diagram.
If a monopoly firm reduced the price of its product, which of following must have been true?
A. MR > MC B. MR < MC C. MR > AR D. MC > AR
During the past several decades, foreign aid to sub-Saharan Africa
a. has been smaller than the aid to other regions, but the reduction in the extreme poverty rate has been larger in Africa than in other areas of the world. b. has been larger than the aid to other regions, but the reduction in the extreme poverty rate has been smaller in Africa than in other areas of the world. c. has declined and as a result the poverty rate in sub-Saharan Africa has risen sharply. d. has risen and, as a result, the poverty rate in sub-Saharan Africa has declined substantially.