Using fiscal policy to stabilize the economy is difficult because rev: 06_13_2018 Multiple Choice potential income is known. the effects of policy changes are known with certainty. there are time lags involved in the use of fiscal policy. the size of the government debt doesn't matter.

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Maximo

21 February, 13:00

Using fiscal policy to stabilize the economy is difficult because rev: 06_13_2018 Multiple Choice potential income is known. the effects of policy changes are known with certainty. there are time lags involved in the use of fiscal policy. the size of the government debt doesn't matter.

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America Crawford · Answer 1

There are time lags involved in the use of fiscal policy

Explanation:

Firstly, what is fiscal policy?

Fiscal policy refers to the use of government spending (expenditures) and tax policies to influence economic conditions, including demand for goods and services, employment, inflation, and economic growth.

Using it to stabilize an economy is difficult because it takes time for its implementation to be in full force