Once either expansionary or contractionary fiscal policy has been undertaken,
A) aggregate demand will respond quickly and the problems in the economy will be corrected.
B) aggregate demand will respond quickly in the short run but the economy will not improve in the long-run.
C) a time lag exists between implementation and the results of the policy.
D) taxes will need to be adjusted because of the recognition time lag.
Answer: C) a time lag exists between implementation and the results of the policy.
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A) negative demand B) positive demand C) negative supply D) positive supply
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What will be an ideal response?