Which of the Following Does Not Limit the Effectiveness of Discretionary

question 128

Multiple Choice

Which of the following does not limit the effectiveness of discretionary fiscal policy?

• A)the difficulty of estimating the natural rate of unemployment
• B)time lags involved in enacting appropriate legislation
• C)the difficulty of getting an accurate measure of the rate of inflation
• D)time lags involved in recognizing the need for fiscal policy
• E)the tendency for people to distinguish between temporary and permanent changes in their income

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Scatterplot

A graph in which the values of two variables are plotted along two axes, the pattern of the resulting points revealing any correlations present.