Those who advocate a balanced budget fiscal policy would agree with all but one of the following statements.Which is the exception?
A) Governments should be non-interventionist.
B) Automatic stabilizers are an effective way of avoiding extreme levels of unemployment or inflation.
C) The economy is capable of automatic self-adjustment in response the problems of unemployment and inflation.
D) Counter cyclical fiscal policy is a powerful and effective tool.
E) Government budget deficits are a serious problem.
Correct Answer:
Verified
Q38: What is involved in counter-cyclical fiscal policy?
A)Higher
Q39: What will counter-cyclical fiscal policy do?
A)Raise GDP
Q40: When a recessionary gap exists,what should the
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