The Great Moderation Consensus Among Macroeconomists Is That Fiscal Policy

question 147

Multiple Choice

The Great Moderation consensus among macroeconomists is that fiscal policy should be used sparingly because:

• A) it cannot be effective.
• B) of policy lags.
• C) it always destabilizes the economy.
• D) of the risk of government waste.

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Definitions:

Self-concept

An individual's perception of themselves, encompassing beliefs, feelings, and thoughts about one's abilities, values, and identity.

Extraversion

A personality trait typified by sociability, talkativeness, assertiveness, and high levels of emotional expressiveness.

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Irrational opinions are beliefs or judgments that are not based on reason or logical thinking but on emotions or flawed reasoning.

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The unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.