Which of the Following Is True

question 6

Multiple Choice

Which of the following is true?

• A)When increased government purchases or expansionary monetary policy does give the economy a boost, no one knows precisely how long it will take to do so.
• B)Given the difficulties of timing stabilization policy, a contractionary monetary policy intended to reduce the severity of a recession may instead add inflationary pressures to an economy that is already overheating.
• C)If velocity changes but moves in a fairly predictable pattern, the connection between the money supply and GDP is still unpredictable.
• D)When the economy is operating at levels significantly lower than the full-employment output, input prices are flexible.
• E)Government estimates of the real GDP and the value of the multiplier are always correct.

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Definitions:

ERISA

The Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry.

Healthcare Benefits

Insurance or services provided by employers or governments to cover medical expenses and health-related issues for individuals.

Coverage

In the context of insurance, it refers to the amount of protection given to policyholders for the risks covered under the policy terms.

Entitlement

A right or benefit guaranteed by law or contract, especially in the context of social welfare or employee benefits.