One Disadvantage of Discretionary Fiscal Policy Is That It Can

question 39

True/False

One disadvantage of discretionary fiscal policy is that it can return the economy to its potential level of output,but at the cost of increasing the price level.

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Definitions:

Variable Costs

Costs that change in proportion to the good or service that a business produces.

Per-unit Basis

A method of expressing costs, revenues, or other financial measures on a per unit of production, sale, or other relevant unit basis.

Level Of Activity

A measure of the volume of production, work, or business operations, often influencing the costs and expenses of a company.

Production Supervisor's Salary

The financial compensation awarded to an individual overseeing the work and activities within a manufacturing or production setting, ensuring efficiency and quality.