he most important argument for a balanced-budget fiscal policy is that an economy can return to full employment through what kind of process?Multiple choice question.InterferingSelf-adjustmentInterventionistFull disclosure

Which of the following is the most important argument in favour of a balanced budget fiscal policy approach?Multiple choice question.The government does not have the power to change tax law.Automatic stabilizers increase the impact of a recession.The balanced budget fiscal policy is the best alternative to countercyclical policy.An economy can self adjust without any intervention.

Discretionary fiscal policy action is often taken on the advice of which group?Multiple choice question.Federal Reserve BankEconomic Advisory PanelCouncil of Economic AdvisersBureau of Economic Leaders

What is the term for the idea that the government should guide the economy to full employment by calculated changes to spending and taxation?Multiple choice question.Crowding out policyCyclical fiscal policyCountercyclical fiscal policyMonetary policy

Assume the economy is at full employment and that investment spending declines dramatically. If the goal is to restore full employment, government fiscal policy should be directed towardMultiple Choicean equality of tax receipts and government expenditures.a reduction of subsidies and transfer payments and an increase in tax rates.an excess of tax receipts over government expenditures.an excess of government expenditures over tax receipts.

Which argument against countercyclical fiscal policy do many economists feel is the most serious?Multiple choice question.It ignores the effect it has on the government's budget.It has a built in inflationary biasIt can take a lot of time for the economy to feel the impact.It can subject an economy to the crowding out effect.