Critics of discretionary fiscal policy emphasize
A)the unreliability of policy rules.
B)the monetary cost of discretionary fiscal policy.
C)the failure of automatic stabilizers in preventing a recession.
D)implementation lags.
E)the inflationary effects of discretionary fiscal policy.

Question

Quizplus · Accepted Answer

Critics of discretionary fiscal policy emphasize implementation lags, which refers to the time it takes to enact a policy and see its effects. This delay can make it difficult for policymakers to respond quickly and effectively to economic fluctuations. Additionally, some argue that discretionary fiscal policy can be subject to political considerations and may be used for short-term gain rather than long-term stability.

Critics of Discretionary Fiscal Policy Emphasize