The Problem with Fiscal Policy That Is Created Because of the Recognition,legislative,implementation,effectiveness,and

question 66

Multiple Choice

The problem with fiscal policy that is created because of the recognition,legislative,implementation,effectiveness,and the evaluation and adjustment lags is called:

• A) crowding out.
• B) a drop in the bucket.
• C) a matter of timing.
• D) a real shock.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to offer for sale.

Consumer Surplus

The imbalance between the funds consumers are willing to dedicate to a good or service and the funds they actually dedicate.

Consumer Surplus

The discrepancy in the total spend consumers are willing to shoulder for a product or service as opposed to what they actually disburse.

Market Price

The present value at which a service or asset is available for purchase or sale in a market.