01. Which ff the following reasons why fine-tuning the economy is not likely to be successful, is not really a problem for fiscal policy? (a) Recognition lag (b) Policy lag O(() Implementation lag (d) Impact lag (e) Both (a) and (b)

01. Which ff the following reasons why fine-tuning the economy is not likely to be successful, is not really a problem for fiscal policy? (a) Recognition lag (b) Policy lag O(() Implementation lag (d) Impact lag (e) Both (a) and (b)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.

Question

01. Which ff the following reasons why fine-tuning the economy is not likely to be successful, is not really a problem for fiscal policy?
O (a) Recognition lag
(b) Policy lag
O (c) Implementation lag
(d) Impact lag
(0) Both (a) and (b)

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