Arguments for Reducing Business-Cycle Fluctuations Include Which of the Following

question 97

Multiple Choice

Arguments for reducing business-cycle fluctuations include which of the following?

• A) These fluctuations do not affect the long-term growth potential.
• B) It increases the costs of unemployment.
• C) It increases the costs of inflation.
• D) It reduces the negative impact on the community.

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Definitions:

Domestic Inflation

The speed at which the overall price level of goods and services increases, leading to a decrease in the country's purchasing power.

Trade Deficits

A condition in which a nation's expenditures on imported goods and services surpass its earnings from exports, resulting in a trade deficit.

Indebtedness To Foreigners

The total amount of money that a country owes to foreign creditors.

Current Consumption

The purchases of goods and services for immediate use, as opposed to saving or investing for future use.