Which of the Following Is a Correct Conclusion Regarding the Successful

question 37

Multiple Choice

Which of the following is a correct conclusion regarding the successful implementation of fiscal policy?

• A)Successful fiscal policy would be easy to achieve if Congress would stay out of the economy and permit natural market forces to restore full-employment equilibrium.
• B)Successful fiscal policy is difficult to achieve because in the real world, the investment, net exports, and consumption schedules are constantly shifting.
• C)Successful fiscal policy is much easier to achieve today because econometric models make economic forecasting much easier.
• D)As the income-expenditure model suggests, fiscal policy planners can move GDP to any level they please by changing tax and spending levels.

---

Definitions:

Differentiated Products

Goods or services that are distinguished from similar products in the market by unique characteristics or features.

High Barriers

Obstacles that make it difficult to enter a particular market or industry, which can include things like high investment costs, stringent regulations, or established competition.

Few Firms

A market condition characterized by a small number of companies controlling the majority of market share, often leading to oligopoly dynamics.

Herfindahl-Hirschman Index

A measure of market concentration used to evaluate potential antitrust concerns, calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.