A major advantage of the ________ production function is that it can be easily transformed into a linear function, and thus can be analyzed with the linear regression method

There are four limitations to the effectiveness of discretionary fiscal policy. Which item below is NOT one of these limitations?

A) shrinking area of lawmaker discretion B) lawmaking time lag C) estimating potential GDP D) fiscal multiplier E) economic forecasting

In a small country, the effect of a given change in government spending

A) on output is large and the effect on the trade balance is small. B) on output is large and the effect on the trade balance is large. C) on output is small and the effect on the trade balance is small. D) on output is small and the effect on the trade balance is large.