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During Normal Times, Discretionary Fiscal Policy

Question 231

Multiple Choice

During normal times, discretionary fiscal policy


A) is more effective in influencing real GDP than at times of a recession.
B) is probably not very effective in influencing real GDP due to time lags.
C) is more effective in influencing real GDP than automatic stabilizers.
D) works well because there are no lag problems in influencing real GDP.

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