Using Discretionary Fiscal Policy to Smooth the Short-Term Business Cycle

question 301

Multiple Choice

Using discretionary fiscal policy to smooth the short-term business cycle is challenging because:

• A) the data needed are not available for almost a month after the fact.
• B) it often takes up to a quarter to confirm a recessionary phase.
• C) once the policy is decided, it can be implemented immediately.
• D) deciding on fiscal policy often takes a long and contentious legislative process.

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Definitions:

Dialectical Reasoning

A process in which opposing facts or ideas are weighed and compared, with a view to determining the best solution or resolving differences.

Eyewitness Testimony

Evidence provided by individuals who were present at the scene of a crime, offering their recollections of the events.

Child Abuse

The physical, sexual, emotional mistreatment, or neglect of a child by a parent, guardian, or other caregiver.

Preschoolers

Children who are in the age group typically between 3 to 5 years old, just before they enter formal schooling.