A problem with using fiscal policy to fine-tune the economy is that
A. fiscal policy impacts the economy too fast.
B. fiscal policy impacts only the largest states in the nation.
C. fiscal policy impacts only urban areas of the nation.
D. it takes time for policymakers to agree on the appropriate fiscal policy.
Answer: D
You might also like to view...
"Supply creates its own demand" implies that
A) the very act of supplying a particular level of goods and services will not necessarily equal the level of goods and services demanded. B) the very act of demanding a particular level of goods and services necessarily equals the level of goods and services supplied. C) the very act of supplying a particular level of goods and services necessarily equals the level of goods and services demanded. D) the government will buy up any surplus of goods and services in a country to avoid economic problems.
The phenomenon of crowding-out suggests that the positive impact of budget deficits on economic activity are reduced by ________
A) the impact produced by government spending on the environment B) an increase in national savings C) the interest rate effects associated with federal deficits D) the increase in pork barrel projects deficit spending entails
In August of this year, Jack can best estimate the current year's GDP by:
A. adjusting the first two quarterly estimates of GDP for seasonal variation. B. taking an average of the last four quarterly estimates of GDP available. C. multiplying the most recent quarter's GDP estimate by four. D. looking back at previous years GDP in order to make an accurate projection.
The assignment of inputs to specific industries by central planners is made difficult by
a. the interdependency among industries. b. lack of data for decision making. c. the danger of a chain reaction among industries if an error is made at any point. d. All of the above are correct.