Which of the Following Is a Consensus View Among Economists

question 46

Multiple Choice

Which of the following is a consensus view among economists with regard to fiscal policy?

• A) Changes in fiscal policy exert a strong influence on real output, just as the basic Keynesian model suggests.
• B) Expansionary fiscal policy will not help promote recovery from a recession.
• C) Restrictive fiscal policy is a potent anti-inflationary weapon.
• D) Since changes in discretionary policy are difficult to time correctly, fiscal policy should not be altered in response to each minor disturbance.

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Definitions:

Annual Raises

The yearly increase in salary or wage that an employee receives, often based on performance, inflation adjustment, or company policy.

Down Payment

An initial, upfront portion of the total amount due, often used in the context of purchasing a home.

Additional Money

Funds that are added to an investment or budget beyond the initial amount allocated or invested.

Lump Sum

A single payment made at a particular time, especially one involving a large amount of money, in contrast to multiple payments over time.