If Lags Cause the Effects of Fiscal Policy to Be

question 49

Multiple Choice

If lags cause the effects of fiscal policy to be delayed for a long period of time,

• A) the policy will magnify recessions and eliminate expansion.
• B) there is no way the policy can smooth out the business cycle.
• C) the policy will magnify expansions and eliminate recessions.
• D) fiscal policy will do nothing to the economy.
• E) there is a risk that the policy can actually magnify the business cycle.

---

Definitions:

Measures of Variability

Statistics that describe the dispersion or spread of data points within a dataset, including range, variance, and standard deviation.

Exclusive Range

A range in mathematics and statistics that includes the start point and the end point, but not the extremes themselves.

Inclusive Range

A statistical measure describing the spread of a set of data points or values, including both the highest and lowest values.

Research Articles

Scholarly papers that present original findings or insights into specific areas of inquiry.