The use of fiscal policy is limited because

Question

Quizplus · Accepted Answer

Fiscal policy can be limited by time lags, which may cause the policy to take effect too late to solve the problem it was designed to address. The other options are not necessarily true. The President and Congress may have different goals, but this does not necessarily limit the use of fiscal policy. There can be time lags associated with fiscal policy, but these lags can be short or long depending on the situation. And the economy is not always at full employment, so this is not a limitation on the use of fiscal policy.

The Use of Fiscal Policy Is Limited Because