Two drawbacks in using fiscal policy as a stabilization tool are that fiscal policy can affect ________ as well as aggregate demand and that fiscal policy is ________.
A. consumption; too flexible
B. potential output; offset by automatic stabilizers
C. potential output; not flexible enough
D. consumption; offset by automatic stabilizers
Answer: C
Economics
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A. Toys and fads B. A social network C. The bandwagon effect D. All of the above
Economics
Which of the following will improve your bargaining position when contracting with a supplier
a. You are better able to accommodate other suppliers' brands b. You must only buy the raw material from your preferred supplier to ensure quality c. Two of your suppliers merge d. Your final product that includes this component becomes more profitable
Economics