Figure 10-9 ​

question 24

Multiple Choice

Figure 10-9
​
-One of the justifications of government stabilization policy is that it may

• A)increase the fluctuations in inflation and employment.
• B)increase the multiplier effect of changes in autonomous spending.
• C)increase the volatility of economic variables.
• D)reduce the severity of inflation and unemployment.

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Definitions:

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

Negotiation

A process where two or more parties discuss an issue in an attempt to reach a consensus or an agreement.

Social Contract

A theoretical agreement between the members of a society or between a society and its rulers about the rights and duties of each.

Unavoidable Tactic

A strategy so essential to a situation that avoiding it could significantly impact the outcome.