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:

Skid Marks

Visible marks left on a road surface by tires that have lost traction, often as a result of sudden braking.

Median

The middle number when numbers are in ascending or descending order.

Box-And-Whisker Plot

Also called a boxplot; a type of graph that shows all four quartiles and the least number; it is drawn to scale.

Fuel-Efficient

A description for vehicles or machines that use less fuel than the average for their category, leading to reduced operational costs and environmental impact.