Opponents of Active Stabilization Policy

question 44

Multiple Choice

Opponents of active stabilization policy

• A)advocate a monetary policy designed to offset changes in the unemployment rate.
• B)argue that fiscal policy is unable to change aggregate demand or aggregate supply.
• C)believe that the political process creates lags in the implementation of fiscal policy.
• D)None of the above is correct.

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Definitions:

Net Equipment Capital Cost

The total cost of acquiring equipment for business operations, minus any salvage value or depreciation.

Increased Working Capital

Refers to an uptick in the company's current assets minus its current liabilities, indicating improved short-term financial health.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary depending on income or profit levels.

Net Capital Investment

The total capital investment in a company minus the depreciation on its previous capital investments.