Fiscal policy may end up being destabilizing to an economy because
A) there is never a long enough time lag.
B) the economy is almost always at full employment.
C) the Prime Minister may have different goals than Parliament.
D) various time lags associated with fiscal policy cause the policy changes to take effect too late to solve the problem that it was supposed to solve.
Correct Answer:
Verified
Q83: Automatic stabilizers are
A)provisions that cause changes in
Q84: Automatic stabilizers
A)shorten the recognition lag of discretionary
Q85: A bill is submitted to Parliament in
Q86: Figure 11-3 Q87: When national income falls,which of the following Q89: An advantage of automatic stabilizers over discretionary Q90: In the Canadian economy,the progressive income tax Q91: Multiplier effects take time to work through Q92: A recent government proposal to increase marginal Q93: The effect time lag of fiscal policy
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