Opponents of Active Stabilization Policy

question 44

Multiple Choice

Opponents of active stabilization policy

• A)advocate a monetary policy designed to offset changes in the unemployment rate.
• B)argue that fiscal policy is unable to change aggregate demand or aggregate supply.
• C)believe that the political process creates lags in the implementation of fiscal policy.
• D)None of the above is correct.

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Definitions:

Himalaya

A major mountain range in Asia, forming a barrier between the Plateau of Tibet to the north and the alluvial plains of the Indian subcontinent to the south.

Lithosphere

The rigid outer layer of the Earth, comprising the crust and the upper mantle, which is involved in tectonic processes like plate movements.

Earth's Peak

Geological high points on Earth's surface, such as mountains or hills, formed by various geological processes including tectonic movements and erosion.

Deformation

The process by which rocks change shape or position due to stress, heat, or pressure without breaking.