Economists and Policy Makers Questioned the Effectiveness of Discretionary Fiscal

question 72

Multiple Choice

Economists and policy makers questioned the effectiveness of discretionary fiscal policy during the 1970s for all the following reasons except:

• A)the difficulty of estimating the natural rate of unemployment.
• B)the time lags involved in implementing fiscal policy.
• C)the existence of possible feedback effects of fiscal policy on aggregate supply.
• D)the distinction between current and permanent income.
• E)the possible feedback effects of fiscal policy on aggregate demand.

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Definitions:

Ethnic Groups

Socially defined categories based on common language, religion, nationality, history, or another cultural factor.

Racial Groups

Categories of people identified by shared physical characteristics or genetic heritage, often constructed within specific social and historical contexts.

Biological Differences

Variations among individuals based on biological factors, including genetics, anatomy, and physiological processes.

Laissez-Faire Racism

A subtle form of racism that assumes a non-interventionist approach in social policy regarding racial issues, perpetuating racial inequality through passive acceptance.