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Although Economists Usually Focus on the Role of Fiscal Policy

Question 195

Multiple Choice

Although economists usually focus on the role of fiscal policy as a stabilization tool for closing a recessionary gap,in practice,fiscal policy may also influence


A) the economy's potential output and the distribution of income.
B) the distribution of income and the level of private capital formation.
C) the economy's potential output,the distribution of income,and the level of private capital formation.
D) the economy's potential output,the distribution of income,and the economic behaviour of firms and households.
E) the economy's potential output,the distribution of income,the level of private capital formation,and the economic behaviour of firms and households.

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