Most economists agree that fiscal policy:
A)can be used to eliminate most if not all economic fluctuations.
B)can be used to fine tune the economy.
C)cannot be used to fine tune the economy.
D)should not be used to eliminate economic fluctuations, no matter how large or small.

Question

Quizplus · Accepted Answer

Fiscal policy, which involves government spending and taxation, is generally not precise enough to fine-tune the economy due to delays in implementation and effects, making it challenging to adjust economic fluctuations with precision.

Most Economists Agree That Fiscal Policy