Multiple Choice
Government economic policy should stimulate the economy during:
A) all phases of the business cycle.
B) recoveries and restrain the economy during recessions.
C) periods of severe inflation and restrain the economy during periods of high unemployment.
D) periods of high unemployment and restrain the economy during periods of severe inflation.
Correct Answer:

Verified
Correct Answer:
Verified
Q171: The four phases of a business cycle,
Q172: What is the basic cause of changes
Q173: Recurring periods of expansion and contraction in
Q174: An increase in U.S. purchases of foreign-built
Q175: If the percent of additional income not
Q177: For households, injections into the spending stream
Q178: How much would total output change if
Q179: You would expect economic activity to increase
Q180: Leakages include:<br>A) taxes, saving, and exports.<br>B) taxes,
Q181: All other things equal, you would expect