Policymakers'use of Stabilization Policy to Eliminate Output Gaps Is More

question 8

Multiple Choice

Policymakers'use of stabilization policy to eliminate output gaps is more appropriate when an economy self corrects very ______ and when the output gap is very ____.

• A)rapidly; large
• B)rapidly; small
• C)slowly; small
• D)slowly; large

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Definitions:

Prejudicial

Having or showing an unfair bias or judgment against someone or something, often based on stereotypes or without adequate information.

Military Veteran

An individual who has served in the armed forces and is no longer serving in a military capacity.

Disability

A physical or mental condition that significantly limits a person's movements, senses, or activities.

Unemployed

Refers to individuals who are capable of working and are actively seeking employment but are unable to find a job.