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Lags that arise in the implementation of fiscal policy mean that: A. expansionar

ID: 1099098 • Letter: L

Question

Lags that arise in the implementation of fiscal policy mean that: A. expansionary fiscal policy will actually shift aggregate demand to the left, rather than to the right. B. expansionary fiscal policy will actually shift aggregate supply, rather than aggregate demand. C. increases in government spending will actually have a contractionary effect. D. policy measures may not have an impact when they are most needed. 12. The 2009 Recovery Act was an example of: A. shifting aggregate demand to the left. B. shifting short-run aggregate supply to the right. C. contractionary fiscal policy. D. expansionary fiscal policy. Lags that arise in the implementation of fiscal policy mean that: A. expansionary fiscal policy will actually shift aggregate demand to the left, rather than to the right. B. expansionary fiscal policy will actually shift aggregate supply, rather than aggregate demand. C. increases in government spending will actually have a contractionary effect. D. policy measures may not have an impact when they are most needed. 12. The 2009 Recovery Act was an example of: A. shifting aggregate demand to the left. B. shifting short-run aggregate supply to the right. C. contractionary fiscal policy. D. expansionary fiscal policy. Lags that arise in the implementation of fiscal policy mean that: A. expansionary fiscal policy will actually shift aggregate demand to the left, rather than to the right. B. expansionary fiscal policy will actually shift aggregate supply, rather than aggregate demand. C. increases in government spending will actually have a contractionary effect. D. policy measures may not have an impact when they are most needed.

Explanation / Answer

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D. policy measures may not have an impact when they are most needed.