Which of the Following Is Not a Weakness of Fiscal

question 65

Multiple Choice

Which of the following is not a weakness of fiscal policy as a tool of economic stabilization?

• A)It is ineffective in dealing with stagflation.
• B)Its correct implementation depends on an accurate estimate of potential output.
• C)It is subject to lags.
• D)Households may not respond to changes they perceive as temporary.
• E)Households may not respond to changes they perceive as permanent.

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Definitions:

Labour Relations

The study and practice of managing relationships between employers and employees, often focusing on collective bargaining, worker rights, and dispute resolution.

Emergent Role

A role that is not officially designated but develops naturally based on group dynamics and individual strengths within a team.

Designated Role

The officially assigned role or responsibility given to an individual in a group or organization, typically outlined in a job description.

Formal Organizational Status

The officially recognized position or rank of an entity within an organizational structure.