The Use of Discretionary Fiscal Policy Is Hampered by

question 25

Multiple Choice

The use of discretionary fiscal policy is hampered by
I.difficulty of estimating the level of potential GDP.
Ii.lack of accuracy of economic forecasts.
Iii.the small impact tax cuts and increases in government expenditure have on aggregate demand.

• A)i only
• B)ii only
• C)iii only
• D)i and ii
• E)i,ii,and iii

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Definitions:

Fastener

A hardware device that mechanically joins or affixes two or more objects together.

Arrowheads

Styled points at the end of dimension lines or leader lines on a drawing, indicating the feature to which the dimension or note refers.

Cutting-plane Lines

Lines on a drawing indicating the imaginary cut made through a part or assembly to reveal internal features in a sectional view.

Quarter Section

A method of dividing a piece of land into four equal parts in land surveying; also indicative of a technique in illustration where a portion is removed to reveal internal features.