Which of the Following Statements Do Opponents of Active Stabilization

question 34

Multiple Choice

Which of the following statements do opponents of active stabilization policy believe?

• A)A monetary policy designed to offset changes in the unemployment rate is effective.
• B)Fiscal policy is unable to change aggregate demand or aggregate supply.
• C)The political process creates lags in the implementation of fiscal policy.
• D)Fluctuations would not exist in the absence of fiscal policies.

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Definitions:

Direct Labor Costs

Costs related to the workforce directly engaged in creating goods or services.

Direct Materials

Raw materials that can be directly traced to the manufacturing process of a product and are a significant portion of the production cost.

Gross Profit

The subtract of cost of goods sold from net sales, indicating the efficiency of a company in managing its production and labor costs.

Factory Overhead

Factory overhead encompasses all the indirect costs involved in manufacturing a product, which may include utilities, maintenance, and management salaries, excluding direct materials and labor costs.