One of the justifications of government stabilization policy is that it may

a. increase the fluctuations in inflation and employment.
b. increase the multiplier effect of changes in autonomous spending.
c. increase the volatility of economic variables.
d. reduce the severity of inflation and unemployment.


d

Economics

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Consider the demand curves for soft drinks shown in the figure above. Moving from point a to point c means that

A) the marginal benefit of each additional soft drink falls. B) the opportunity cost of another soft drink increases. C) people's incomes have decreased. D) the price of a soft drink has increased.

Economics

If Year 1 is the base year, the growth of real GDP is approximately

A) 100%. B) 109.5%. C) 137.5%. D) 148%.

Economics

What aspects of a game are specified by "the rules of the game"?

A) timing of players' moves B) payoffs C) information available to each player D) All of the above

Economics

In a free-market economy, the pricing mechanism always operates to

a. produce an equitable distribution of income. b. provide an efficient allocation of resources. c. correct any inequality in distribution of output. d. equate consumers' desires with ability to pay.

Economics