Why Have Fiscal and Monetary Policies Been Criticized as Tools

question 16

Multiple Choice

Why have fiscal and monetary policies been criticized as tools to fight stagflation?

• A)Because they are able to cure unemployment but not inflation.
• B)Because they are able to cure inflation but not unemployment.
• C)Because they are unable to cure either unemployment or inflation.
• D)Because they are unable to cure both unemployment and inflation at the same time.

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Definitions:

Work Time

The period of time an individual spends performing tasks related to their employment.

Labor Force

The total number of people, including both the employed and the unemployed, who are currently available to work.

Union Membership

The status of being a member of an organized labor union, which represents workers in negotiations with employers over wages, benefits, and working conditions.

Public Sector

The part of the economy composed of government services and enterprises, including education, healthcare, and law enforcement.