Stabilization Policy Refers to Attempts to

question 70

Multiple Choice

Stabilization policy refers to attempts to

• A)shift the AD curve to smooth short-run fluctuations in output.
• B)shift the SRAS curve to smooth short-run fluctuations in output.
• C)shift the AD curve to keep the price level as low as possible.
• D)shift the SRAS curve to keep the nominal interest rate as low as possible.

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Definitions:

Tariff

A levy placed on goods and services brought into a country to raise their cost and enhance the competitiveness of homegrown products.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness and interdependence of economies worldwide.

Technological Advancements

The progress in technology which enhances efficiency, productivity, and capabilities in various industries.

Transportation Costs

Expenses incurred in moving goods and services from one location to another, significantly impacting trade and the final price of products.