The Modern Synthesis View of Fiscal Policy Stresses

question 129

Multiple Choice

The modern synthesis view of fiscal policy stresses

• A) how easy it is to time fiscal policy changes so they exert a stabilizing influence on the economy.
• B) the ineffectiveness of fiscal policy, even during periods of widespread unemployment.
• C) the difficulties involved in timing fiscal policy changes so they will exert a stabilizing impact on the economy.
• D) that automatic stabilizers do not help smooth fluctuations in the economy.

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Definitions:

Transposition Error

A mistake made when digits within a number are inadvertently reversed or misplaced in the recording process.

Slide Error

An accounting error resulting from moving decimal points improperly in figures, not due to mathematical mistakes.

Trial Balance

A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the balance of a company's accounting system.

Prepaid Insurance

An expense paid in advance for insurance coverage, recorded as a current asset on the balance sheet until the coverage period elapses.