Using Fiscal Policy, Including Automatic Stabilizers, to Stabilize Output Over

question 77

Multiple Choice

Using fiscal policy, including automatic stabilizers, to stabilize output over a business cycle is not consistent with:

• A) rational expectations.
• B) inflation targeting.
• C) the natural-rate hypothesis.
• D) a strict balanced-budget rule.

---

Definitions:

Economic Goals

Objectives that individuals, businesses, or governments aim to achieve to ensure sustainable economic growth and development.

Industrial Unionism

A labor union organizing method where all workers in the same industry are organized into the same union, regardless of skill or trade.

Job Control Unionism

A labor relations strategy focused on the collective negotiation of work roles, conditions, and terms of employment by unions to protect workers’ interests.

Lack Of Flexibility

The inability or unwillingness to adapt to new conditions or circumstances, which can hinder progress and efficiency.