Stabilization Policy Refers to Policy Actions Aimed At

question 76

Multiple Choice

Stabilization policy refers to policy actions aimed at:

• A) reducing the severity of short-run economic fluctuations.
• B) equalizing incomes of households in the economy.
• C) maintaining constant shares of output going to labor and capital.
• D) preventing increases in the poverty rate.

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Definitions:

Digestive

Pertains to the biological system in organisms responsible for breaking down food into nutrients and waste.

Esophagus

The muscular tube that moves food from the throat to the stomach.

Sphincter

A ring-like muscle that controls the passage of substances through an opening in the body, such as the anus or esophagus.

Peristalsis

The series of wave-like muscle contractions that moves food through the digestive tract.