Once either expansionary or contractionary fiscal policy has been undertaken,

A) aggregate demand will respond quickly and the problems in the economy will be corrected.
B) aggregate demand will respond quickly in the short run but the economy will not improve in the long-run.
C) a time lag exists between implementation and the results of the policy.
D) taxes will need to be adjusted because of the recognition time lag.

Answer: C) a time lag exists between implementation and the results of the policy.

Economics

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When the government's outlays equal its tax revenue, the budget

A) has a deficit and the national debt is increasing. B) has a deficit and the national debt is decreasing. C) is balanced and the national debt is not changing. D) has a surplus and the national debt is decreasing. E) has a surplus and the national debt is increasing.

Economics

Which of the following will shift the consumption function upward?

a. A tax increase. b. Higher capacity utilization rates. c. Higher disposable income. d. Lower wealth holdings. e. Expectations of inflation.

Economics