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:

Decreased

A reduction in size, quantity, or intensity of a particular thing or phenomenon.

Increased

Describes something that has become larger or greater in size, amount, or degree.

National Origins

Refers to the country or countries that people originate from, often considered in the context of immigration and demographic statistics.

Quota System

A policy or practice of limiting the number of people from certain groups who can do something, such as immigrate to a country, attend a school, or be employed in certain jobs.