Which of the Following Statements Concerning Stabilization Policy Is Correct

question 16

Multiple Choice

Which of the following statements concerning stabilization policy is correct?

• A)Increasing government spending during an economic boom would be an example of a stabilization policy.
• B)Increasing taxes during a recession would be an example of a stabilization policy.
• C)New Keynesian economists are skeptical of the value of stabilization policies.
• D)Increasing the money supply during a recession is an example of a stabilization policy.

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Definitions:

Confusion

A state of mental disarray where an individual has difficulty understanding their environment, situation, or tasks, often accompanied by disorientation and difficulty in making decisions.

Ekman

Refers to Paul Ekman, a psychologist known for his research on facial expressions and their link to emotions.

Gender Identity

An individual's personal sense of their own gender, which may or may not correspond to the sex assigned at birth.

Gender Dysphoria

Distress or discomfort that may occur when a person's gender identity does not match their physical or assigned sex.