The Use of Discretionary Fiscal Policy to End a Recession

question 216

Multiple Choice

The use of discretionary fiscal policy to end a recession is limited because

• A) the legislative process is slow.
• B) potential GDP changes too rapidly.
• C) the real-world multiplier is too small to have an impact on real GDP.
• D) in the real world, taxes are not induced.

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Definitions:

Sex-Stereotyped

Having attributes or characteristics traditionally assigned to a specific gender by society.

Group Opinion

The collective judgment or viewpoint shared among members of a group.

Conform

To change one’s behavior or beliefs in order to match those of others, often as a result of real or imagined group pressure.

Biological Agents

Microorganisms or toxins that can cause diseases or medical conditions in humans, animals, or plants.