When using discretionary fiscal policy to counter a fluctuation in the economy, policymakers should
A)make sure the policy is carried out in a timely manner.
B)use government purchases as an instrument only if the economy is in a recession.
C)use taxes as an instrument only if the economy is in a boom.
D)make sure that changes in government purchases will have an effect on real GDP.
E)make sure that transfer payments are held constant.

Question

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The Answer of When using discretionary fiscal policy to counter a fluctuation in the economy, policymakers should
A)make sure the policy is carried out in a timely manner.
B)use government purchases as an instrument only if the economy is in a recession.
C)use taxes as an instrument only if the economy is in a boom.
D)make sure that changes in government purchases will have an effect on real GDP.
E)make sure that transfer payments are held constant.

When Using Discretionary Fiscal Policy to Counter a Fluctuation in the Economy