The New Classical Critique of Fiscal Policy Asserts That

question 50

Multiple Choice

The new classical critique of fiscal policy asserts that

• A) decreases in government spending and increases in taxes are largely offset by increases in savings.
• B) recognition lags make it difficult to time fiscal policy.
• C) implementation lags make it hard to get fiscal-policy proposals through the government.
• D) impact lags make it difficult to know how much the spending multiplier will impact the total income in an economy.
• E) increases in government spending and decreases in taxes are largely offset by increases in savings.

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Definitions:

Desert Varnish

A thin, dark film or coating of iron and manganese oxides, silica, and other materials; formed by prolonged exposure at the surface; synonym rock varnish.

Desert Pavement

A natural concentration of pebbles and other rock fragments that mantle a desert surface of low relief.

Cross-Cutting Relations

A geological principle stating that any geologic feature that cuts across another feature must be younger than the feature it cuts.

Inclusions

Pieces of one rock unit that are enclosed within another rock unit, often used in geology to determine the relative age of rock layers.