The use of fiscal policy is limited because
A) the economy is almost always at full employment.
B) the President may have different goals than Congress.
C) time lags associated with fiscal policy may cause the policy to take effect too late to solve the problem it was supposed to address.
D) there is never a long enough time lag.
Correct Answer:
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Q167: The use of discretionary fiscal policy to
Q168: Suppose that real GDP equals potential GDP,
Q169: Q170: Suppose real GDP exceeds potential real GDP. Q171: Q173: Q174: If real GDP is less than potential Q175: Suppose that the government decreases its expenditures Q176: When real GDP is less than potential Q177: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
