Use the three Ts of fiscal policy to explain the challenges faced when using discretionary fiscal policy to counter a recession. a) The policy must be used only for as long as needed to avoid crowding out.
b) target the specific regions and groups of workers who need help the most.
c) be implemented before economic conditions have severely worsened.
d) be implemented slowly, so that it works properly.

The three Ts of fiscal policy used to counter a recession state that:

a) The policy must be used only for as long as needed to avoid crowding out.

b) target the specific regions and groups of workers who need help the most.

c) be implemented before economic conditions have severely worsened.

Explanation:

Keynesians who support stimulus policies argue that discretionary fiscal policies need to be “timely, targeted, and temporary” for them to be successful.  The temporary component argues that discretionary fiscal policies should not be used for too long a period to avoid crowding out the market forces.  The targeted component states that fiscal policies, which are marshaled out to counter a recession, should only provide help to those who require them most, and not to everybody, across the board.  The last component is that there should not be delays in implementing counter-recession measures because the economy will be worst off if the policies are implemented when economic conditions have become severe.

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