Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is a constraint to discretion ry fiscal policy? O Discretionary fiscal policy that is expansionary can only affect frictional unemployment by

image text in transcribed
Which of the following is a constraint to discretion ry fiscal policy? O Discretionary fiscal policy that is expansionary can only affect frictional unemployment by reducing cyclical unemployment. O Discretionary fiscal policy will only affect aggregate supply leaving aggregate demand unchanged. O Discretionary fiscal policy has lags in its effectiveness with time needed to recognize the problem and to carry out policy solutions. Discretionary fiscal policy can only be used to address unemployment, with no ability to affect the price level. Discretionary fiscal policy that is expansionary tends to reduce interest rates and overstimulate investment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Austro-corporatism Past, Present, Future

Authors: Gunter Bischof

1st Edition

1000675858, 9781000675856

More Books

Students also viewed these Economics questions

Question

=+What is Pats minimin choice?

Answered: 1 week ago

Question

How to find if any no. is divisble by 4 or not ?

Answered: 1 week ago

Question

Explain the Pascals Law ?

Answered: 1 week ago

Question

What are the objectives of performance appraisal ?

Answered: 1 week ago