An Active Stabilization Policy Designed to Limit the Size of Government

question 51

Multiple Choice

An active stabilization policy designed to limit the size of government would

• A)raise G to eliminate a recessionary gap and lower taxes to eliminate an inflationary gap.
• B)raise G to eliminate a recessionary gap and raise taxes to eliminate an inflationary gap.
• C)reduce taxes to eliminate a recessionary gap and raise G to eliminate an inflationary gap.
• D)reduce taxes to eliminate a recessionary gap and reduce G to eliminate an inflationary gap.

Understand the distinction between active and passive voice and their appropriate use in business writing.

Recognize the significance of concrete and abstract words in conveying clear messages.

Learn the principles of effective paragraph development and emphasis placement in business messages.

Understand the importance of credibility and authenticity in business communication.

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Definitions:

Tariffs

Government levies on goods and services brought into the country, frequently employed to safeguard local industries against overseas rivals.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.

Textiles

Materials made from fibers, filaments, threads, or yarns, typically used in the production of fabrics and cloth.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost compared to others.