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Fiscal policy A. often operates with a significant fiscal lag due to problems of recognition, legislation,...

Fiscal policy
  • A. often operates with a significant fiscal lag due to problems of recognition, legislation, and implementation.
  • B. can always bring the economy to full employment.
  • C. is conducted by the Federal Reserve System.
  • D. is encouraged by classical economists.
  • E. consists of changes in the money supply and interest rates.
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Answer #1

Option A is correct

exp- Fiscal policy os executed by the governement. Expansionary fiscal policy implies expanding the administration consumption or abatement in charges a d contractionary fiscal policy is diminishing government use and expanding charges. Along these lines, there are some fiscal slacks while actualizing the policy. Recognition slack is the measure of time it takes for fiscal specialists to perceive an issue in the economy. Implementation slack is the measure of time it takes for fiscal policy choices to be actualized.

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