The USEconomy Remains Subject to Frequent Boom and Bust Cycles

question 12

Multiple Choice

The U.S.economy remains subject to frequent boom and bust cycles.Throughout U.S.history,policymakers after the Great Depression often

• A) raise or lower taxes and spending to adjust aggregate demand and thereby smooth the ?business cycle.
• B) take a hands-off approach to the business cycle.
• C) consult with world organizations on how to address cyclic fluctuations.
• D) close economies to international trade.

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Definitions:

Wheat

A cereal grain that is a staple food in many parts of the world, used to make products like flour, bread, and pasta.

Cattle

Large domesticated bovines that are raised for their meat (beef), milk, or as draft animals.

Opportunity Cost

Losing out on potential advantages from multiple alternatives by committing to one.

Crude Oil

A naturally formed, crude oil substance made up of hydrocarbon accumulations and various organic compounds.