Question

Discretionary fiscal policy is handicapped by A. automatic​ stabilizers, law−making time​ lags, and potential GDP estimation....

Discretionary fiscal policy is handicapped by

A.

automatic​ stabilizers, law−making time​ lags, and potential GDP estimation.

B.

automatic stabilizers and induced taxes.

C.

induced taxes and automatic stabilizers.

D.

economic​ forecasting, law

minus

−making time​ lags, and induced taxes.

E.

law

minus

−making time​ lags, estimation of potential​ GDP, and economic forecasting.

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Answer #1

Answer: Discretionary fiscal policy is handicapped by

- making time lags, estimation of potential GDP and economic forecasting.

Discretionary fiscal policy is a government polIcy that changes government spending or taxes to influence the aggregate demand.

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