Challenges to Keynesian economics were based on the:
A) fact that lags in fiscal policy make it relatively ineffective.
B) liquidity trap, which makes fiscal policy ineffective.
C) possibility of a trade-off between inflation and unemployment.
D) usefulness of discretionary fiscal policy.

Question

Quizplus · Accepted Answer

Lags in fiscal policy, such as recognition, implementation, and impact lags, can delay the effects of fiscal measures, making them less effective in stabilizing the economy in a timely manner.

Challenges to Keynesian Economics Were Based on The