Stabilization policy may be necessary to modify or counteract volatile changes in aggregate demand

Building infrastructure is left to the government since ________

A) the cost of such projects would not be economical for any individual firm B) borrowing costs make such projects prohibitively expensive C) inflation tends to erode the real value of debt D) a natural monopoly would result if this activity were undertaken by an individual private firm

The leader of a federal political party made the following campaign promise: "My administration will improve welfare by increasing national defense without requiring sacrifices elsewhere in the economy." This is an example of a positive statement

a. True b. False Indicate whether the statement is true or false