Business cycle through fiscal policy


Government's efforts to stabilize the business cycle through fiscal policy can destabilize the economy due to the presence of _______.

lags in the process of crafting a budget appropriate to the circumstances

a negative interaction between fiscal and monetary policy due to the multiplier effect

a tendency of prices to change faster than the interest rate

business cycles that are closely synchronized to the political cycle

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Macroeconomics: Business cycle through fiscal policy
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