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A Major Problem with Using Fiscal Policy Is That

Question 114

Multiple Choice

A major problem with using fiscal policy is that:


A) fiscal policy has no effect on cyclical unemployment.
B) the federal government has no authority to spend or tax to stabilize the economy.
C) public officials are extremely reluctant to turn to fiscal policy to control the economy.
D) there are time lags between the identification of a problem and the development of a fiscal policy to deal with the problem.

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