Which of the Following Do Critics of Stabilization Policy Argue

question 74

Multiple Choice

Which of the following do critics of stabilization policy argue?

• A) There is too short a lag between the time policy is passed and the time policy has an impact on the economy.
• B) The impact of policy may not last long enough for the problem to be solved.
• C) Policy cannot cause economic fluctuations.
• D) Policy can be a source of, instead of a cure for, recessions.

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Definitions:

Throughput

The rate at which goods or services are produced or processed in a system.

Break-Even Analysis

A means of finding the point, in dollars and units, at which costs equal revenues.

Variable Costs

Costs that vary directly with the level of production or business activity, such as materials and labor.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.