Reducing Business Cycle Fluctuations Is an Important Goal of Macroeconomic

question 50

Multiple Choice

Reducing business cycle fluctuations is an important goal of macroeconomic policy because it:

• A)allows inflation to be zero.
• B)keeps output constant.
• C)keeps unemployment at zero.
• D)helps keep inflation low.
• E)helps keep unemployment high.

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Definitions:

Stock Price

The current price at which a share of a company is being traded on the stock market.

Common Stock

A type of security that represents ownership in a corporation, with holders usually having voting rights and potentially receiving dividends.

Portfolio Beta

A metric assessing how a portfolio's risk and volatility stack up against that of the general market.

Treasury Bills

Short-term U.S. government debt obligations backed by the Treasury Department with a maturity of less than one year.