Fiscal policy may end up being destabilizing to an economy because
A) there is never a long enough time lag.
B) the economy is almost always at full employment.
C) the President may have different goals than Congress.
D) various time lags associated with fiscal policy cause the policy changes to take effect too late to solve the problem it was supposed to solve.
Ans: D) various time lags associated with fiscal policy cause the policy changes to take effect too late to solve the problem it was supposed to solve.
Economics
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If price increases and the quantity purchased increases, we know that
A) supply increased. B) supply decreased. C) demand increased. D) demand decreased.
Economics
Use the following diagrams for the U.S. economy to answer the next question.
If the economy is initially at full employment, which of the diagrams best portrays a recession as a result of an increase in the cost of production?
A. Graph (1) B. Graph (2) C. Graph (3) D. Graph (4)
Economics