Author Question: Actual federal budgets are not an accurate measure of discretionary fiscal policy because: a. it is ... (Read 121 times)

burchfield96 · **on:** Jun 30, 2018

Actual federal budgets are not an accurate measure of discretionary fiscal policy because:
a. it is difficult to measure government spending accurately.
b. people cheat on their income taxes.
c. budget deficits increase during expansions even without changes in fiscal policy.
d. budget deficits increase during recessions even without changes in fiscal policy.
e. earlier administrations may have contributed to current budget deficits.

Question 2

Which of the following does not exist when an economy is operating at full employment?
a. An unemployment rate of 5 percent or 6 percent
b. Seasonal unemployment
c. Structural unemployment
d. Cyclical unemployment
e. Frictional unemployment