The most effective fiscal stimulus will
A) create jobs, even if the employment is on unproductive projects.
B) substantially change the composition of aggregate demand.
C) encourage interest groups to lobby more intensely and make larger political contributions.
D) direct the economy to full employment and direct resources toward economically productive projects.

Question

Quizplus · Accepted Answer

The most effective fiscal stimulus would direct the economy towards full employment and focus on economically productive projects, which would lead to sustained economic growth in the long run. Creating jobs on unproductive projects (choice A) would not contribute to the economy's growth or development, and choice B and C are not valid options. Therefore, choice D is the best option.

The Most Effective Fiscal Stimulus Will