Opponents of Using Policy to Stabilize the Economy Generally Believe

question 22

Multiple Choice

Opponents of using policy to stabilize the economy generally believe that

• A)neither fiscal nor monetary policy have much impact on aggregate demand.
• B)attempts to stabilize the economy decrease the magnitude of economic fluctuations.
• C)unemployment and inflation are not cause for much concern.
• D)economic conditions can easily change between the start of policy action and when it takes effect.

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Definitions:

Other Comprehensive Income

This encompasses earnings, revenues, expenses, and gains or losses that are not included in net income, reflecting the total non-owner changes in equity.

Accrued/Prepaid Pension Cost

Expenses related to pension plans that have been incurred but not yet paid, or payments made in advance for future pension costs.

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated using a formula considering factors like salary history and duration of employment.