It Will Be Difficult to Institute Fiscal Policy in a Stabilizing

question 29

Multiple Choice

It will be difficult to institute fiscal policy in a stabilizing manner because politicians will find

• A) it more attractive to raise taxes than to increase spending.
• B) it attractive to increase taxes during a recession, but they will be reluctant to reduce them during an expansion.
• C) budget deficits attractive during a recession, but they will be reluctant to run budget surpluses during an expansion.
• D) budget surpluses attractive during a recession, but they will be reluctant to run budget deficits during an expansion.

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Definitions:

Industrialized Nations

Countries that have undergone industrialization, characterized by significant technological advancement and a shift from agricultural to industrial economies.

Pastoralists

Individuals or groups who raise and tend livestock as their primary means of livelihood, often involving nomadic or semi-nomadic herding practices.

Agricultural Groups

Communities or societies whose primary mode of subsistence is based on crop farming and livestock raising.

Division of Labor

the allocation of different tasks and roles to different individuals or groups in a society, often based on factors such as skill, age, or gender.