Keynesians and non-Keynesians would largely agree on which one of the following statements?
A) Expansionary fiscal policy will tend to substantially increase current real output.
B) Proper timing of discretionary fiscal policy is difficult to achieve.
C) The use of discretionary fiscal policy is an important stabilization tool.
D) Market forces will automatically direct the economy toward full employment.

Question

Quizplus · Accepted Answer

Both Keynesians and non-Keynesians recognize the challenges in timing discretionary fiscal policy effectively, due to delays in recognizing economic conditions, implementing policy, and the time it takes for policy to affect the economy.

Keynesians and Non-Keynesians Would Largely Agree on Which One of the Following