Which Does NOT Explain When Fiscal Policy Is Most Likely

question 100

Multiple Choice

Which does NOT explain when fiscal policy is most likely to matter?

• A) when the economy needs a short-run boost even at the expense of the long run
• B) when the problem is a deficiency in aggregate demand rather than a real shock
• C) when the monetary policy lags behind fiscal policy
• D) when many resources are unemployed

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Definitions:

Grapefruits

A large, round citrus fruit with a bitter to semi-sweet flavor, commonly used in breakfasts and salads.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning they have no preference for one bundle over another.

Midterm Grade

A formal assessment or evaluation of a student's academic performance midway through a course or term.

Indifference Curve

A graph showing different combinations of two goods that give a consumer equal satisfaction and utility, highlighting their preferences.