Which of the Following Is Not a Reason Why the Australian

question 75

Multiple Choice

Which of the following is not a reason why the Australian economy has generally been more stable since 1950 than before that time?

• A)Goods have become a larger fraction of GDP and services have become a smaller fraction of GDP.
• B)The government has actively pursued economic policy to combat recessions and prolong expansions.
• C)Unemployment benefits and other government programs curtail the decline in spending that occurs during a recession.
• D)Services have become a larger fraction of GDP and goods have become a smaller fraction of GDP.

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Definitions:

Free Trade Area

A region in which a group of countries agrees to reduce or eliminate trade barriers among themselves, promoting the free exchange of goods and services.

International Monetary Fund

An international organization aiming to foster global monetary cooperation, secure financial stability, and facilitate international trade.

Currency Exchange

A business or financial activity that allows customers to trade one currency for another, typically offering exchange rates based on global currency values.

Stabilize

Make or become unlikely to give way or overturn; make firm, steady, or constant.