Which of the Following Is Not a Weakness of Fiscal

question 12

Multiple Choice

Which of the following is not a weakness of fiscal policy?

• A) The implementation of fiscal policy is difficult.
• B) Time lags in fiscal policy are long and variable.
• C) Fiscal policy works only during periods of stagflation.
• D) Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income.
• E) Fiscal policy might have undesirable long-term effects on short-run aggregate supply.

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Definitions:

Individualized Consideration

Individualized consideration is a leadership behavior where leaders attend to the needs of each follower, acting as mentors or coaches, and fostering their personal development.

New Vision

Fresh or innovative outlook, strategy, or idea intended to guide the direction of an organization or project.

LMX Differentiation

focuses on the variability of leader-member exchange relationships within a team, indicating that a leader may have different quality relationships with various members.

Quality LMX Relationships

High-quality leader-member exchange relationships characterized by mutual trust, respect, and obligation.