Stabilization Policies Have

question 203

Multiple Choice

Stabilization policies have:

• A) not reduced the effects of business cycles caused by either demand shocks or supply shocks.
• B) reduced the economic fluctuations caused by demand shocks but have not been effective against supply shocks.
• C) reduced the economic costs of supply shocks but have not been so successful against demand shocks.
• D) reduced economic fluctuations by neutralizing the effects of both supply and demand shocks.

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Definitions:

Budgeting System

A systematic approach to creating a financial plan that forecasts income and expenditures over a certain period.

Budget Acceptance

The process or act of formally approving a financial plan for revenues and expenses over a specific period.

Corporate Level

Pertains to major strategic decisions affecting the whole company, typically made by top-level management.

Responsibility Centres

Units within an organization for which managers are responsible, focusing on revenues, costs, or a combination of both, to measure performance.