Which of the Following Statements Is True About Fiscal Policy

question 35

Multiple Choice

Which of the following statements is true about fiscal policy lags?

• A) Automatic stabilizers have a much shorter impact lag than discretionary fiscal policy.
• B) Although the recognition lag is equally long for discretionary fiscal policy and for automatic stabilizers, the latter avoid implementation lag because automatic stabilizers are triggered automatically.
• C) Unlike discretionary fiscal policy, automatic stabilizers respond automatically to changes in the economy, thus avoiding the recognition and implementation lags.
• D) Although automatic stabilizers have a much shorter lag, discretionary fiscal policy instruments have a more potent impact on the economy because they are more precise.

Identify changes in immigration patterns and their impact on societal composition.

Understand the role of gender and cultural stereotypes in shaping societal interactions.

Comprehend the distinction between prejudice and discrimination.

Recognize the importance of kinship and familial roles in different cultures.

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Definitions:

Net Profit

The amount of money a company retains after subtracting all its expenses, taxes, and costs from its total revenue.

Wooden Cooling Racks

Kitchen tools made of wood designed to allow air to circulate around baked goods, cooling them evenly after being removed from the oven.

Stock Turn Rate

A measure of how many times inventory is sold or used over a certain period, indicating the efficiency of inventory management.

Invested

The act of committing money or resources to a project, entity, or asset in the expectation of receiving future returns.