One reason the government enacts fiscal policy instead of waiting for the economy to correct itself is the automatic adjustment:
A. will cause permanent inflation.
B. means a lower level of potential GDP.
C. can take a very long time.
D. is generally not supported by government officials.
Answer: C
Economics
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If the demand for a good decreased, what would be the effect on the equilibrium price and quantity?
a. Price would increase, and quantity would decrease. b. Price would decrease, and quantity would decrease. c. Price would increase, and quantity would increase. d. Price would decrease, and quantity would increase.
Economics
The median voter model predicts a strong tendency for both candidates to choose a position away from the middle of distribution
a. True b. False Indicate whether the statement is true or false
Economics