The Use of Discretionary Fiscal Policy Is Hampered by I

question 82

Multiple Choice

The use of discretionary fiscal policy is hampered by i. difficulty of estimating the level of potential GDP.
Ii. lack of accuracy of economic forecasts.
Iii. the small impact tax cuts and increases in government expenditure have on aggregate demand.

• A)i only
• B)ii only
• C)iii only
• D)i and ii
• E)i, ii, and iii

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Definitions:

Unlimited Liability

A legal structure in which owners are personally responsible for all of the company's debts and liabilities without limit.

Limited Liability

A legal structure where a company's owners are protected from personal liability for the company's debts or liabilities.

Limited Liability

Refers to a legal structure where a company's owners are not personally liable for the company's debts or liabilities.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.