Although Economists Usually Focus on the Role of Fiscal Policy

question 130

Multiple Choice

Although economists usually focus on the role of fiscal policy as a stabilization tool for closing a recessionary gap,in practice,fiscal policy may also influence

• A) the economy's potential output and the distribution of income.
• B) the distribution of income and the level of private capital formation.
• C) the economy's potential output,the distribution of income,and the level of private capital formation.
• D) the economy's potential output,the distribution of income,and the economic behaviour of firms and households.
• E) the economy's potential output,the distribution of income,the level of private capital formation,and the economic behaviour of firms and households.