What Do Opponents of Using Policy to Stabilize the Economy

question 105

Multiple Choice

What do opponents of using policy to stabilize the economy generally believe?

• A) that neither fiscal nor monetary policy have much impact on aggregate demand
• B) that attempts to stabilize the economy can increase the magnitude of economic fluctuations
• C) that unemployment and inflation are not cause for much concern
• D) that unemployment is a cause for concern,but inflation is not

---

Definitions:

Operating Activities

Transactions and events that affect the net income of a business, involving its primary ongoing operations.

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered or used, but not yet paid for.