What is considered a limitation of fiscal policy?

The chosen answer highlights that a limitation of fiscal policy is that its effects are often only temporary. Fiscal policy, which involves government spending and taxation decisions, can influence economic activity but tends to produce results that may not be long-lasting. For instance, if the government increases spending to stimulate the economy, the boost in demand may initially lead to job creation and production increases. However, once the fiscal stimulus ends, the economy may revert to its previous state, lacking sustained growth unless further measures are taken. This temporary effect contrasts with the often longer-lasting impacts of structural changes or sustained monetary policy adjustments, which can reshape economic conditions over time.

In analyzing the other choices, it becomes evident that they represent different aspects of fiscal policy but do not accurately describe its primary limitations. The second choice suggesting it requires more extensive research than monetary policy overlooks that both types of policy have their research demands but differ in their nature and application processes. The assertion regarding the quick reversibility of fiscal policy is incorrect, as changes in tax laws or spending levels often involve lengthy legislative processes and cannot be easily reversed. Lastly, while fiscal policy can contribute to inflation, particularly through excessive spending, immediate inflation is not inherently a direct limitation of fiscal policy itself; rather, it is a potential outcome