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Hitman42 [59]
3 years ago
9

The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some

disagreement as to whether the government should attempt to stabilize the economy. Which of the following statements about the debate over stabilization policy are correct?
a. Advocates of active stabilization policy believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.
b. Advocates of active stabilization believe that implementation lags for fiscal and monetary policy do not exist.
c. Opponents of active stabilization believe that active fiscal and monetary policies have no effect on aggregate demand.
d. Opponents of active stabilization policy believe that significant time lags in both fiscal and monetary policy often exacerbate economic fluctuations.
Business
1 answer:
STatiana [176]3 years ago
5 0

Answer:

  • a. Advocates of active stabilization policy believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.
  • d. Opponents of active stabilization policy believe that significant time lags in both fiscal and monetary policy often exacerbate economic fluctuations.

Explanation:

Those who believe the government should engage in stabilization policies believe that it is necessary for the government to do so because it would limit the excessive sentiments of consumers and businesses such as optimism and pessimism which affect the economy significantly as they govern consumer behavior and can either overheat the economy or lead to it underperforming.

Opponents however believe that the time it takes between the implementation of such policies and the time the policy's effects are seen, lead to worse economic fluctuations that could be avoided if the government simply stopped trying to stabilize the economy.

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Your friend is in the category of people considered to have HIGH INCOME.

Friend's salary is more than $1 million and he lives off a credit card. He has high income but net worth can't be determined.

5 0
3 years ago
45. Consider a small economy in which consumers buy only two goods: pretzels and cookies. In order to compute the consumer price
kakasveta [241]

Answer:

neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year

Explanation:

a. the percentage change in the price of pretzels is equal to the percentage change in the price of cookies from year to year. b. the number of pretzels bought by the typical consumer is equal to the number of cookies bought by the typical consumer in each year. neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year. d. neither the price of pretzels nor the price of cookies changes from year to year.

The consumer price index measures the changes in the price level of a basket of good. It is used to measure the rate of inflation.

Since the CPI measures changes in price level, it is assumed that quantities of goods purchased remains constant.

I hope my answer helps you

8 0
3 years ago
Derst Inc. sells a particular textbook for $39. Variable expenses are $28 per book. At the current volume of 49,000 books sold p
Liono4ka [1.6K]

Answer:Annual fixed expenses = $ 539,000

Explanation:

Given;

break even point on books sold= $49,000

sales price per unit = $39

variable cost= $28

Using the formulae,

Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales

49,000   =Fixed cost / ( 39-28)

Fixed cost = 49,000  x 11

               = $ 539,000

Annual fixed expenses = $ 539,000

7 0
3 years ago
Why is it important to use positive language in business messages​
nasty-shy [4]

It is more important to use positive language in business messages because positive language sends a better appearance rather than sending a business message with negative language.

8 0
3 years ago
Read 2 more answers
A company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. Demonstrate the required adj
baherus [9]

Answer:

The required adjusting entry would be to debit the Interest <u>expense</u> account and <u>credit</u> the Interest<u> </u><u>payable</u> account.

Explanation:

The number of days that a loan debt stays unpaid is referred to as the outstanding number of days.

In line with the general accounting rules, all expenses must be debited. Therefore, the interest expense has to be debited.

Interest payable, however, is the amount owed to a lender by a firm and is thus credited as the matching journal entry to the interest expense.

Therefore, we have:

The required adjusting entry would be to debit the Interest <u>expense</u> account and <u>credit</u> the Interest<u> </u><u>payable</u> account.

6 0
2 years ago
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