Fiscal Policy Focuses on Manipulating _____

question 36

Multiple Choice

Fiscal policy focuses on manipulating _____.

• A)aggregate demand to smooth out business fluctuations
• B)aggregate supply to smooth out business fluctuations
• C)both aggregate supply and aggregate demand to smooth out business fluctuations
• D)aggregate demand to stimulate the economy and aggregate supply to contract it
• E)short-run aggregate supply to stimulate the economy and aggregate demand to contract it

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Definitions:

S&P 500

An American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.

Diversified Portfolio

An investment strategy that involves spreading investments across various assets classes to reduce risk, enhance returns, and avoid significant impact from any single asset's performance.

ETFs

Exchange-Traded Funds, investment funds traded on stock exchanges, much like stocks.

MSCI Japan Index

An index designed to measure the performance of the large and mid cap segments of the Japanese market.