Which of the Following Statements Concerning Stabilization Policy Is Correct

question 16

Multiple Choice

Which of the following statements concerning stabilization policy is correct?

• A)Increasing government spending during an economic boom would be an example of a stabilization policy.
• B)Increasing taxes during a recession would be an example of a stabilization policy.
• C)New Keynesian economists are skeptical of the value of stabilization policies.
• D)Increasing the money supply during a recession is an example of a stabilization policy.

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Definitions:

Negative Attitude

A pessimistic outlook or disposition towards people, situations, or events, often hindering progress and positive outcomes.

Emotional Intelligence

Being able to identify, control, and communicate one’s emotions, along with managing relationships with others in a sensible and empathetic manner.

Emotional Tasks

Activities or duties that require managing and expressing emotions appropriately.

Components of Attitudes

The three main elements that make up attitudes: cognitive (beliefs and thoughts), affective (emotions and feelings), and behavioral (actions or intentions to act).