Economics · Fiscal Policy
In relation to fiscal policy, what is formula flexibility?
- 1The use of discretionary fiscal policy alone to solve the problem of unemployment
- 2The use of built-in stabilisers alone to control price rise
- 3The use of non-discretionary fiscal policy alone to solve the problem of unemployment
- 4The use of discretionary fiscal policy along with built-in stabilisers to control fluctuations in unemployment and prices✓
Correct answer
The use of discretionary fiscal policy along with built-in stabilisers to control fluctuations in unemployment and prices
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