Stabilization Policies Are Policies Designed to

question 52

Multiple Choice

Stabilization policies are policies designed to

• A) keep output constant.
• B) keep prices constant.
• C) move the economy closer to potential output.
• D) increase trade.

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Definitions:

National Income

The total value of all goods and services produced by a country over a specific period, accounting for income earned domestically and abroad.

Labor Force

All the members of a particular organization or population who are able to work, viewed collectively.

Unionized

Describes a workplace or workforce that is represented by one or more labor unions, which negotiate wages, work rules, and working conditions.

Strike

An action of unionized employees in which they (1) discontinue working for the employer and (2) take steps to prevent other potential workers from offering their services to the employer.