Tax and Spending Policies Affect Aggregate Demand Only After Some

question 4

Multiple Choice

Tax and spending policies affect aggregate demand only after some time elapses.Due to these time lags, fiscal policies end up getting based on

• A)forecasts on the future state of the economy that are often inaccurate.
• B)forecasts on the present state of the economy that are often inaccurate.
• C)forecasts on the present state of the economy that are often accurate.
• D)all of these.

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Definitions:

Infant Memory

The capacity for infants to encode, store, and retrieve information, which begins to develop shortly after birth.

Memory Item

A specific piece of information or knowledge that has been retained by the brain and can be recalled or remembered.

Enhanced Encoding

The process of improving the way information is absorbed and stored in the memory through the use of techniques or stimuli that strengthen memory traces.

Memory Pruning

Memory pruning involves the process by which the brain removes or weakens certain neural connections that are not often used, thereby optimizing cognitive functioning by removing unnecessary information.