The existence of lags in designing and implementing fiscal policy helps Illustrate some of the limitations of fiscal policy almed at easing the burdens of a recession. Which of the following statements best describes a situation when fiscal policy is more appropriate? O The Implementation lag is shorter than the recognition and legislative lags. O Demand-pull Inflation is expected to occur as the economy begins to self-correct. O To stimulate an economy that is in a severe recession or one that is slow to correct. O Fiscal policy favors tax cuts Instead of Increased government purchases since this removes the legislative lag.
The existence of lags in designing and implementing fiscal policy helps Illustrate some of the limitations of fiscal policy almed at easing the burdens of a recession. Which of the following statements best describes a situation when fiscal policy is more appropriate? O The Implementation lag is shorter than the recognition and legislative lags. O Demand-pull Inflation is expected to occur as the economy begins to self-correct. O To stimulate an economy that is in a severe recession or one that is slow to correct. O Fiscal policy favors tax cuts Instead of Increased government purchases since this removes the legislative lag.
Chapter1: Making Economics Decisions
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![The existence of lags in designing and implementing fiscal policy helps illustrate some of the limitations of fiscal policy aimed at easing
the burdens of a recession.
Which of the following statements best describes a situation when fiscal policy is more appropriate?
O The Implementation lag is shorter than the recognition and legislative lags.
O Demand-pull Inflation is expected to occur as the economy begins to self-correct.
O To stimulate an economy that is in a severe recession or one that is slow to correct.
O Fiscal policy favors tax cuts Instead of increased government purchases since this removes the legislative lag.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8592f3b3-859c-46ab-b392-3c205ebbc3fb%2F23191ede-c4ae-4347-b283-4386afaa7316%2F3sx0hr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The existence of lags in designing and implementing fiscal policy helps illustrate some of the limitations of fiscal policy aimed at easing
the burdens of a recession.
Which of the following statements best describes a situation when fiscal policy is more appropriate?
O The Implementation lag is shorter than the recognition and legislative lags.
O Demand-pull Inflation is expected to occur as the economy begins to self-correct.
O To stimulate an economy that is in a severe recession or one that is slow to correct.
O Fiscal policy favors tax cuts Instead of increased government purchases since this removes the legislative lag.
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