Recognition lags in fiscal policy stem largely from
A) the fact that it takes time before a fiscal policy, such as a change in government purchases or a change in taxes, is agreed to and put into effect.
B) the fact that it takes time for a policy action to have its full effect on aggregate demand.
C) the difficulty of collecting economic data in a timely and accurate fashion.
D) households and businesses may not respond to fiscal policy to the extent that policy makers had hoped, for example, they may not be as responsive to a tax cut .
Correct Answer:
Verified
Q110: When contractionary fiscal policy leads to
A) less
Q111: Expansionary fiscal policy leads to
A) lower interest
Q112: An expansionary fiscal policy is likely to
A)
Q113: An expansionary fiscal policy is likely to
Q114: The crowding-out effect refers to which of
Q116: An expansionary fiscal policy is likely to
Q117: Which of the following is an example
Q118: Expansionary fiscal policy leads to
A) lower exchange
Q119: Which of the following contributes to implementation
Q120: An expansionary fiscal policy is likely to
A)
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