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:

Punish

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Ought Self

A component of self-concept based on how individuals believe they should behave or be, driven by societal, cultural, or personal standards and obligations.