If the government knew the precise values of the multiplier and potential income, fine-tuning the economy would:
A) be possible.
B) be much easier, but mistakes would still occur occasionally.
C) still be very difficult.
D) be more difficult.
Correct Answer:
Verified
Q53: In practice, economists:
A)agree about what the level
Q54: Crowding out:
A)increases the multiplier effect, so that
Q55: Suppose the government increases spending by $30
Q56: Fiscal policy is typically:
A)extremely flexible because most
Q57: Activist fiscal policies:
A)generally produce balanced budgets.
B)usually produce
Q59: Contractionary fiscal policy that reduces the budget
Q60: Because reducing both unemployment and inflation simultaneously
Q61: The introduction of "rainy-day funds" by states
Q62: If the economy falls into a recession,
Q63: In 2009, output was beneath potential. At
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