Which of the following is a consensus view among economists with regard to fiscal policy?
a. Changes in fiscal policy exert a strong influence on real output, just as the basic Keynesian model suggests.
b. Expansionary fiscal policy will not help promote recovery from a recession.
c. Restrictive fiscal policy is a potent anti-inflationary weapon.
d. Since changes in discretionary policy are difficult to time correctly, fiscal policy should not be altered in response to each minor disturbance.
D
Economics