One of the Shortcomings of Fiscal Policy Is That

question 58

Multiple Choice

One of the shortcomings of fiscal policy is that:

• A) it has significant time lags, which make it more effective.
• B) it takes effect immediately, so it is the best policy to use in an economic crisis.
• C) it affects aggregate demand indirectly through the interest rate.
• D) it has time lags, so sometimes it may end up destabilizing the economy.

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Definitions:

Problem-solving Therapy

A psychological treatment that helps individuals cope with stressful life experiences through effective problem-solving skills.

Counterconditioning

A behavioral therapy technique that involves teaching the client to replace unwanted responses to a stimulus with a desired behavior.

Paradoxical Directives

A therapeutic technique where clients are instructed to engage in or continue the problematic behavior, leading to awareness and change.

Jay Haley

A prominent figure in the field of family therapy and strategic therapy, known for his innovative approaches to treatment.