What Do Countercyclical Fiscal and Monetary Policies Have in Common

question 134

Multiple Choice

What do countercyclical fiscal and monetary policies have in common?
i.They are both used to reduce economic fluctuations.
ii.They both work by shifting the labor demand curve.

• A) i) and ii) are both true
• B) i) and ii) are both false
• C) i) is true and ii) is false
• D) i) is false and ii) is true

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Definitions:

Wages

Payments made to employees in exchange for their labor, typically calculated on an hourly, daily, or piecework basis.

Price of Houses

The amount of money needed to buy a residential property, which can vary widely based on location, size, and other factors.

Demand for Product

The desire and willingness of consumers to purchase a specific good or service at a given price.

Output

The aggregate quantity of products or services generated by a business, sector, or economic system within a specified timeframe.