Policies taken to move the economy closer to potential output:
A. must be expansionary policies.
B. must be contractionary policies.
C. are called stabilization policies.
D. are lagging policies or automatic policies.
Answer: C
You might also like to view...
What does U.S. GDP intend to measure?
A) The market value of final goods and services produced by U.S. citizens during the course of a year B) The market value of all goods and services produced by U.S. citizens during the course of a year C) The market value of final goods and services produced within the U.S. during the course of a year D) The market value of all goods and services produced within the U.S. during the course of a year
How do the marginal propensity to consume, the marginal propensity to import, and the income tax rate influence the multiplier?
What will be an ideal response?