Which of the Following Is Not a Weakness of Fiscal

question 79

Multiple Choice

Which of the following is not a weakness of fiscal policy?

• A)Implementation of policy is difficult.
• B)Time lags in fiscal policy are long and variable.
• C)Fiscal policy works only during periods of stagflation.
• D)Fiscal policy often affects only current income,but many economic decisions are made on the basis of permanent income.
• E)Fiscal policy might have undesirable long-term effects on short-run aggregate supply.

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Definitions:

Classification

The process of organizing or grouping items into categories based on shared characteristics or criteria.

Prototype

A mental image or best example that incorporates all the features we associate with a category, used in cognitive psychology to explain how people categorize objects and information.

Exemplar

A typical or standard example of a particular concept, phenomenon, or category.

Routine Event

Activities or occurrences that are regular and predictable in one's daily life.