The Goal of Monetary Policy and Fiscal Policy Is to

question 313

Multiple Choice

The goal of monetary policy and fiscal policy is to

• A) offset the shifts in aggregate demand and thereby eliminate unemployment.
• B) offset shifts in aggregate demand and thereby stabilize the economy.
• C) enhance the shifts in aggregate demand and thereby create fluctuations in output and employment.
• D) enhance the shifts in aggregate demand and thereby increase economic growth

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Definitions:

Ratio Variable

A variable that offers measurable differences between values and a true zero point, allowing comparisons of absolute magnitudes.

Semantic Differential Scale

A scale used in surveys that measures respondents' attitudes towards a topic by rating it between two opposite adjectives.

Opposite Meanings

Refers to words or phrases that have completely different or contrasting definitions from each other, also known as antonyms.

Likert Scale

A psychometric scale commonly involved in research that employs questionnaires, designed to gauge the attitude or response of a subject towards a set of criteria, using a linear scale.