Recognition lag is the time it takes for policymakers to recognize the existence of an economic expansion or a recession

Which of the following is a major deficiency of fiscal policy as a stabilization tool?

a. Congress is reluctant to make changes in either taxes or expenditures. b. The Constitution requires the president to submit and Congress to pass a balanced budget. c. Both political and economic factors make it unlikely that changes in fiscal policy will be timed correctly. d. A change in fiscal policy exerts major effects on the economy quickly.

Explain whether each of the following is a fixed cost or a variable cost for Damian Dandridge's tattoo parlor

a. The payment he makes to buy tattoo ink. b. The wages he pays his employees. c. The $500-per-month payment he makes to advertise his shop on highway billboards. d. The lease payment he makes to the landlord who owns the building where his shop is located. e. The payment he makes on his liability insurance policy.