Which of the following is a problem with discretionary fiscal policy as an economic stabilization tool?
a. Discretionary changes in fiscal policy can be easily anticipated by private decision makers.
b. It is difficult to properly time discretionary changes in fiscal policy.
c. Discretionary fiscal policy is only effective during a recession.
d. Discretionary fiscal policy is only effective during an economic boom.
B
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If there's an increase in the future marginal product of capital in a large open economy, it causes the current account to ________ and saving to ________
A) fall; rise B) rise; remain unchanged C) fall; remain unchanged D) rise; rise
A point on the per-worker production function shows:
a. the total output produced by the labor force of an industry on the vertical axis for each level of capital per worker on the horizontal axis. b. the marginal output per worker on the vertical axis for each level of worker per unit of capital on the horizontal axis. c. the marginal output per worker on the vertical axis for each level of capital per worker on the horizontal axis. d. the level of capital per worker on the vertical axis for respective average output per worker on the horizontal axis. e. the average output per worker on the vertical axis for each level of capital per worker on the horizontal axis.
Economic models are abstractions from reality
Indicate whether the statement is true or false
The cross-price elasticity of garlic salt and onion salt is -2, which indicates that garlic salt and onion salt are substitutes
a. True b. False Indicate whether the statement is true or false