Economists and Policy Makers Questioned the Effectiveness of Discretionary Fiscal

Economists and policy makers questioned the effectiveness of discretionary fiscal policy during the 1970s for all the following reasons except:

A) the difficulty of estimating the natural rate of unemployment.
B) the time lags involved in implementing fiscal policy.
C) the existence of possible feedback effects of fiscal policy on aggregate supply.
D) the distinction between current and permanent income.
E) the possible feedback effects of fiscal policy on aggregate demand.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free