Which of the following is a consensus view among economists with regard to fiscal policy?
A) Changes in fiscal policy exert a strong influence on real output, just as the basic Keynesian model suggests.
B) Expansionary fiscal policy will not help promote recovery from a recession.
C) Restrictive fiscal policy is a potent anti-inflationary weapon.
D) Since changes in discretionary policy are difficult to time correctly, fiscal policy should not be altered in response to each minor disturbance.

Question

Quizplus · Accepted Answer

Economists generally agree that due to the difficulty in timing discretionary fiscal policy changes correctly, it is not advisable to alter fiscal policy in response to every minor economic disturbance.

Which of the Following Is a Consensus View Among Economists