During Normal Times

question 171

Multiple Choice

During normal times

• A) fiscal policy is very effective because it the effects of fiscal policy will swamp automatic stabilizers and time lags can be.
• B) fiscal policy can immediately correct problems in the economy.
• C) the Ricardian equivalence theorem makes fiscal policy very effective.
• D) fiscal policy is not effective because of the recognition time lag.

---

Definitions:

Good Performance

The achievement of tasks or goals at a level that meets or exceeds expectations.

Rewarded

Receiving something of value in recognition of service, effort, or achievement.

Goal Specificity

The degree to which goals are clearly defined, specific, and measurable, rather than vague or ambiguous, enhancing focus and direction.

Expectancy

A person's belief about the likelihood of achieving success in a specific situation, often influencing motivation and behavior.