During normal times
A) fiscal policy is very effective because it the effects of fiscal policy will swamp automatic stabilizers and time lags can be.
B) fiscal policy can immediately correct problems in the economy.
C) the Ricardian equivalence theorem makes fiscal policy very effective.
D) fiscal policy is not effective because of the recognition time lag.
Correct Answer:
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Q218: An advantage of automatic stabilizers over discretionary
Q219: When real Gross Domestic Product (GDP) falls,
Q220: All of the following are automatic fiscal
Q221: Automatic stabilizers are so-named because
A) they are
Q222: If the government increases aggregate demand when
Q224: The advantage of automatic stabilizers is that
Q225: Which one of the following is NOT
Q226: What do automatic stabilizers attempt to stabilize?
A)
Q227: During which time will fiscal policy be
Q228: Government-provided unemployment insurance is an example of
A)
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