Which of the following is not a weakness of fiscal policy? O a. Fiscal policy might have undesirable long-term effects on short-run aggregate supply. O b. Time lags in fiscal policy are long and variable. O c. Fiscal policy works only during periods of stagflation. d. Implementation of policy is difficult. e. Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income.
Which of the following is not a weakness of fiscal policy? O a. Fiscal policy might have undesirable long-term effects on short-run aggregate supply. O b. Time lags in fiscal policy are long and variable. O c. Fiscal policy works only during periods of stagflation. d. Implementation of policy is difficult. e. Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income.
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 5P
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![Which of the following is not a weakness of fiscal policy?
O a. Fiscal policy might have undesirable long-term effects on short-run aggregate supply.
b. Time lags in fiscal policy are long and variable.
c. Fiscal policy works only during periods of stagflation.
O d. Implementation of policy is difficult.
e. Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb83ccd3a-d161-43e6-8f96-e32e0a75e38e%2F0b4594ee-afcb-4329-a6ed-072b34fdf654%2Fcjhi22xh_processed.png&w=3840&q=75)
Transcribed Image Text:Which of the following is not a weakness of fiscal policy?
O a. Fiscal policy might have undesirable long-term effects on short-run aggregate supply.
b. Time lags in fiscal policy are long and variable.
c. Fiscal policy works only during periods of stagflation.
O d. Implementation of policy is difficult.
e. Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income.
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