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:

Time Function Mapping

A visual representation technique used in process improvement to analyze the flow of information or material through a process over time.

Supply Chain

The network of organizations involved in producing, delivering, and selling goods and services, from the acquisition of raw materials to the final consumer.

Crossover Point

The point at which two different options have equal costs or benefits, influencing a change in decision.

Fixed Costs

Costs that do not vary with the volume of production, such as rent, salaries, and insurance.