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Which of the Following Policies Would Be Advocated by Someone

question 39

Multiple Choice

Which of the following policies would be advocated by someone who wants the government to follow an active stabilization policy when the economy is experiencing severe unemployment?


Definitions:

Foreign Producers

Companies or individuals that produce goods or services in a country other than where the products are consumed.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified time.

Tariff

A tax imposed on imported goods and services to raise their price, thereby protecting domestic industries from foreign competition.

Liberalize International Trade

The process of reducing tariffs, quotas, and other barriers to allow for the free flow of goods and services across national borders.

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