One Thing That Policy Makers Often Overlook Is

question 17

Multiple Choice

One thing that policy makers often overlook is

• A)how quickly fiscal policy can respond to changes in economic conditions
• B)how fiscal policies unintentionally affect individual incentive to work,spend,save and invest
• C)how fiscal policy affects the price level
• D)how fiscal policy affects the economy's output
• E)how voters might respond to a policy that increases taxes

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Definitions:

Square Feet

A unit of area measurement equivalent to the area of a square with sides of one foot in length.

Quasilinear Preferences

Preferences where utility is linear in one argument, usually money, allowing for easy analysis of changes in wealth while other goods are evaluated non-linearly.

Homothetic

Pertaining to a class of production functions or utility functions where equal proportionate changes in inputs result in equal proportionate changes in output.

Utility Function

An economic tool used to encode a consumer's preference orderings over a set of alternatives into a real-valued function. (Duplicate rephrase)