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:

Ending Inventory

The total value of all unsold goods and materials a business has at the end of an accounting period.