Economists Who View the Economy as Inherently Unstable Generally Argue

question 68

Multiple Choice

Economists who view the economy as inherently unstable generally argue that:

• A) stabilization policy is too dangerous to be used.
• B) the economy should be stimulated when it is depressed and slowed when it is overheated.
• C) the economy should be slowed when it is depressed and stimulated when it is overheated.
• D) monetary and fiscal policies should follow rigid rules of constant growth.

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Definitions:

Growth Rate

The growth rate measures the rate of increase in the size or value of something over a specific period, often used in the context of economic growth.

Kiva Form

A ceremonial structure fundamental to the ancient Pueblo cultures in the American Southwest, traditionally circular in shape and semi-subterranean, used for religious rituals.

Semi-subterranean

Refers to buildings or structures that are partially below ground level, commonly used for thermal efficiency or protection.

North American Southwest

A geographical region of the United States characterized by its desert climates, significant Native American history and culture, and landmarks such as the Grand Canyon.