Question

Which of the following is true of active fiscal policy actions?

a. Policymakers can pinpoint the economic outcomes of their policies.
b. The political process makes it easy to pass needed actions in times of economic crisis.
c. Economic conditions will stay the same without policymaker action.
d. It is often difficult for policymakers to know whether policies had any impact on the economy.

Answer 1

When we say active fiscal policy, this refers to the government who makes adjustments to the expenditures and tax rates in order to influence and check the economy of the nation. Based on the statements above, the one that is considered true would be statement A.