Poorly timed discretionary policy can do more harm than good. Getting the timing right with fiscal policy is generally
A) far less difficult than with monetary policy.
B) about the same difficulty as with monetary policy.
C) less difficult than with monetary policy.
D) more difficult than with monetary policy.
Question 2
Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is 3
A) the quantity demanded is economically efficient but the quantity supplied is economically inefficient.
B) too many consumers want to buy iced tea.
C) the quantity supplied is greater than the economically efficient quantity.
D) economic surplus is maximized.
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