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.

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Definitions:

Whistle-Blowing Protection

Legal safeguards for employees who expose wrongdoing, corruption, or illegal activities within their organization.

Golden Rule

An ethical principle suggesting that one should treat others as one's self would wish to be treated.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Resources

Assets or materials that can be drawn upon by a person or organization in order to function effectively.