Section Stabilizing Planned Spending The Role of Fiscal Policy 139 Two

Section stabilizing planned spending the role of

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Section: Stabilizing Planned Spending: The Role of Fiscal Policy
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139.Two drawbacks in using fiscal policy as a stabilization tool are that fiscal policy affects ______ as well as aggregate demand and fiscal policy is _______. A. consumption; too flexible B.potential output; not flexible enough C. consumption; offset by automatic stabilizers D. potential output; offset by automatic stabilizers AACSB: Analytical Skills Blooms: Knowledge Frank - Chapter 21 #139 Learning Objective: 21-05 Explain why the basic Keynesian model suggests that fiscal policy is useful as a stabilization policy, and discuss the qualifications that arise in applying fiscal policy in real-world situations. Section: Fiscal Policy as a Stabilizing Tool: Three Qualifications
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140.Automatic stabilizers are provisions in the law that imply automatic ______ in government spending or _______ in taxes when real output declines. AACSB: Analytical Skills Blooms: Knowledge Frank - Chapter 21 #140 Learning Objective: 21-05 Explain why the basic Keynesian model suggests that fiscal policy is useful as a stabilization policy, and discuss the qualifications that arise in applying fiscal policy in real-world situations. Section: Fiscal Policy as a Stabilizing Tool: Three Qualifications
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141.Provisions in the law that imply automatic increases in government spending or decreases in taxes when real output declines are called: AACSB: Analytical Skills Blooms: Knowledge Frank - Chapter 21 #141 Learning Objective: 21-05 Explain why the basic Keynesian model suggests that fiscal policy is useful as a stabilization policy, and discuss the qualifications that arise in applying fiscal policy in real-world situations. Section: Fiscal Policy as a Stabilizing Tool: Three Qualifications
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142.One drawback in using fiscal policy as a stabilization tool is that fiscal policy: AACSB: Analytical Skills Blooms: Understanding Frank - Chapter 21 #142 Learning Objective: 21-05 Explain why the basic Keynesian model suggests that fiscal policy is useful as a stabilization policy, and discuss the qualifications that arise in applying fiscal policy in real-world situations. Section: Fiscal Policy as a Stabilizing Tool: Three Qualifications
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