Question
Which of the following is not a challenge of the fiscal
policy? i.            Difficulty in estimating the rate of employment  ii.           Time lag involved in implementation of the policy iii.          Increase aggregate demand may lead to unemployment iv           Increase in government expensesÂSolution
Estimating demand of the economy is a very complex and challenging task. Because of the large complex structures there is always a lag in policy implementation. Increase demand in the economy shall lead to improving the employment scenario.
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