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:

Numerical Majority

Refers to the larger part of a group or population, representing the greatest number of individuals within the group.

Apartheid

Was a caste system based on race that existed in South Africa from 1948 until 1992. It consigned the large black majority to menial jobs, prevented marriage between blacks and whites, and erected separate public facilities for members of the two races. Asians and people of “mixed race” enjoyed privileges between these two extremes.

Ethnic Label

A term or descriptor applied to individuals or groups based on their ethnicity, often used to emphasize differences rather than similarities.

Social Necessity

The concept that certain conditions, goods, or services are essential for the functioning and well-being of a society.