The Use of Fiscal Policy to Stabilize the Economy Is

question 248

Multiple Choice

The use of fiscal policy to stabilize the economy is limited because

• A)changes in government spending and tax rates have a small effect on aggregate demand.
• B)changes in government spending and tax rates have a small effect on interest rates.
• C)the legislative process can be slow,which means that it is difficult to make fiscal policy actions in a timely way.
• D)the Internal Revenue Service (IRS)resists changes in tax rates because of all the changes they would have to make to the tax code.

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Definitions:

Quality Cost Report

A document that outlines the costs associated with preventing, detecting, and correcting defective work, categorized into prevention costs, appraisal costs, and failure costs.

Rework Labor

The labor required to correct defective products or errors in production, not initially planned for in the manufacturing process.

Appraisal Cost

Expenses associated with evaluating or inspecting materials and products to ensure quality standards are met.

Quality Cost Report

A document that outlines the costs associated with preventing, detecting, and correcting defective work, categorized into prevention, appraisal, internal failure, and external failure costs.