To Support the Argument for an Active Role for Government

question 23

Multiple Choice

To support the argument for an active role for government in stabilizing the economy,it must be true that

• A) consumers are not rational and that not all wages and prices are flexible.
• B) not all wages and prices are flexible and that government must be able to react quickly enough.
• C) government must be able to react quickly enough and that shocks to the economy be primarily due to aggregate supply shocks.
• D) shocks to the economy be primarily due to aggregate supply shocks and that consumers are not rational.

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Definitions:

Wage Determination

The process through which wages for labor are set, involving factors like supply and demand, bargaining power, and government policies.

Computer Software

A collection of data, programs, or instructions used to operate computers and execute specific tasks.

Accounting Services

Professional services that include the measurement, processing, and communication of financial information about economic entities.

College Graduate

A college graduate is an individual who has successfully completed a degree program at a college or university, earning an associate's, bachelor's, or higher degree.