Which of the Following Statements Is Correct

question 68

Multiple Choice

Which of the following statements is correct?

• A) Built-in stability only partially offsets fluctuations in economic activity.
• B) Built-in stability works in halting inflation, but it cannot alleviate unemployment.
• C) Built-in stability can be relied on to eliminate completely any fluctuation in economic activity.
• D) Built-in stability has eliminated the need for discretionary fiscal policy.

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Definitions:

Management Power

The authority given to managers or executives to make decisions and oversee the operations of an organization or its assets.

Apparent Authority

A situation in which a person appears to have been given the power by another party to act on their behalf, leading third parties to reasonably believe that authority exists.

Partnership Agreement

A contract among business partners detailing the business structure, distribution of profits and losses, and rules for the partnership's governance and operation.

Formal Resolution

An official decision or declaration adopted by an organization or assembly through a formal process.