Stabilization policies are government policies used to affect ________, with the objective of eliminating output gaps.
A)planned aggregate expenditure
B)potential output.
C)labor productivity.
D)diminishing returns to capital.

Question

Quizplus · Accepted Answer

Stabilization policies are government policies that are used to affect planned aggregate expenditure, with the objective of eliminating output gaps. The two major tools of stabilization policy are monetary policy and fiscal policy.

Stabilization Policies Are Government Policies Used to Affect ________, with the Objective