The political process by which fiscal policy is made
A. is slow and results in a long time lag for fiscal policy.
B. is efficient in reaching a decision within a year.
C. is relatively rapid, contributing to the effectiveness of fiscal policy.
D. requires only that the president approve changes to the budget, a decision that takes several months.
Answer: A
You might also like to view...
At an output level of 8 thousand bushels, explain in terms of both marginal profit and total profit why the individual farmer should expand production.
In the competitive market for organic corn, market demand is QD = 340 – 2P and market supply is QS= 100 + 4P, where P is the price per bushel, and Q is market output in thousands of bushels. Each individual farmer faces a marginal cost function of MC = 10 + 3q, where q is the single farmer’s output level in thousands.
If a manufacturer has a U-shaped long-run average total cost curve, then
a. it cannot correctly calculate the position of its fixed cost curve b. there is an output level such that producing one more unit increases average total cost c. there must be a large range of production over which the firm experiences constant returns to scale d. no two quantities of output can have the same average total cost e. there does not exist an output level such that producing one more unit decreases average total cost
Taxes constitute the difference between GDP and disposable income
a. True b. False Indicate whether the statement is true or false
The demand for gasoline will respond more to a change in price over a period of five weeks than over a period of five years
a. True b. False Indicate whether the statement is true or false