All of the Following,except One,is a Criticism of Using Counter-Cyclical

question 90

Multiple Choice

All of the following,except one,is a criticism of using counter-cyclical fiscal policy during a recession.Which is the exception?

• A)Its effectiveness is subject to serious time lags.
• B)It tends to be inflationary.
• C)It can cause serious budget deficits.
• D)It reinforces the business cycle.

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Definitions:

Aggregate Demand Curve

Curve showing planned purchase rates for all goods and services in the economy at various price levels.

Price Level

An index that measures the average price of goods and services in an economy at a specific time.

Aggregate Supply Curve

A graphical representation that shows the total quantity of goods and services that producers in an economy are willing to produce and sell at different price levels.

Horizontal Segment

In graphical analyses, a part of a line or curve that runs parallel to the horizontal axis, indicating constant value or absence of change.