Discretionary Fiscal Policy May Fail to Stabilize the Economy or May

question 64

Multiple Choice

Discretionary fiscal policy may fail to stabilize the economy or may even make the economy less stable because of:

• A) its ineffectiveness.
• B) government waste.
• C) lags in deciding on and implementing a policy change.
• D) the business cycle.

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Definitions:

Burnout

A state of emotional, physical, and mental exhaustion caused by excessive and prolonged stress, often related to work.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when exposed to stress.

Major Life Events

Significant occurrences in a person's life that have the capacity to alter the course of life significantly, often requiring considerable adjustment.

Catastrophes

Extreme and sudden disasters or events causing significant damage or suffering.