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All. The associated with fiscal policy make(s). tuning difficult to implement successfully. (A) decision (B) (C) decision lag; fine. decision lag; gross. execution lag; fine. execution lag; gross. execution and decision lags; fine. (D) (E)

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Hubert Koch
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9 Sep 2018

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Related questions

In the united states income taxes and transfer payments

A) Are the source of most of the operational lag with fiscal policy

B) Act as automatic stabilisers for fluctuations in income 

c) Decrease income rates and the net export effect

D) Destabalize the economy 

Critics of stabilization policy argue that:

A. there is a lag between the time policy is passed and the time policy has an impact on the economy.

B. the impact of policy may last longer than the problem it was designed to offset.

C. policy can be a source of, instead of a cure for, economic fluctuations.

D. All of the above are correct.

A5. An important implication of the permanent-income hypothesis is that fiscal policy operates with a lag.

a. Explain why a permanent increase in government spending may cause the IS curve to shift out slowly over time rather than all at once.

b. If permanent income is a weighted average of last period's and this period's income, what determines the speed at which the IS curve shifts out over time?

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