Unlike monetary policy, fiscal policy does not experience policy lags
Indicate whether the statement is true or false
FALSE
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The concept of government as redistributor is
A. approved by many but questioned by many as well. B. generally rejected as against “the American way.” C. largely approved by a vast majority of Americans. D. unnecessary in the United States because income disparities are small. E. a conservative idea that many liberals reject.
The difference between the marginal social cost and the marginal private cost equals the
A) cost of producing an additional unit of a good. B) marginal external benefit. C) marginal external cost. D) marginal private benefit.
The flaw of the original Keynesian model of the business cycle is that it
A) assumes away output fluctuations. B) assumes complete wage rigidity. C) assumes unrealistic fooling of workers. D) requires procyclical wage movements and continuous labor market equilibrium.
The more inelastic the demand for a product, the more the actual burden of a tax on the product will:
a. fall on sellers. b. fall on buyers. c. fall equally on both buyers and sellers. d. create a larger deadweight loss (or excess burden).