52) Which statement about fiscal policy and aggregate supply is correct?

The focus of fiscal policy and aggregate supply is to reduce unemployment.

Fiscal policies that influence aggregate supply increase inflationary pressures as output expands.

Fiscal policies that influence aggregate supply take less time to implement than do demand-side fiscal policies.

Fiscal policies that influence aggregate supply do not always require tradeoffs between price level and output.

53) What is a critical dilemma when implementing fiscal policy in reference to timing lags?

Fiscal policy requires a short and contentious legislative process.

The information lag takes up too much time and is too costly.

The economy may already be in a recovery before fiscal policy is enacted.

Short-term variations in key indicators are common and present randomness in the data.

56) In 2018, interest on the public debt was between 6% and 7% of GDP.

True

False

57) The Laffer curve suggests that if tax rates are very high, _____ tax rates will _____ tax revenues.

reducing; increase

raising; increase

reducing; decrease

reducing; stabilize

59) Intergenerational imbalance would NOT be a problem if

Social Security and Medicare were a larger percentage of the federal budget.

the federal budget were fiscally sustainable.

all government programs were financed on a pay-as-you-go basis.

all government projects were long-term.