Which of the following is true with regard to the use of countercyclical fiscal policy as a stabilization tool?
A) Successful fiscal policy would be easy to achieve if Congress had greater access to forecasting tools.
B) Successful fiscal policy is difficult to achieve because Congress acts slowly and our ability to predict the future is limited.
C) Successful fiscal policy is easier to achieve today because econometric forecasting models are highly accurate.
D) Congress and the President have persistently altered fiscal policy in a stabilizing manner.

Question

Quizplus · Accepted Answer

Countercyclical fiscal policy is difficult to achieve because Congress tends to act slowly in response to economic changes and forecasting tools can often be inaccurate. Additionally, there may be political barriers to implementing countercyclical policy in a timely and effective manner.

Which of the Following Is True with Regard to the Use