Stabilization policy refers to policy actions aimed at:
A)reducing the severity of short-run economic fluctuations.
B)equalizing incomes of households in the economy.
C)maintaining constant shares of output going to labour and capital.
D)preventing increases in the poverty rate.

Question

Quizplus · Accepted Answer

Stabilization policy is designed to reduce the severity of short-run economic fluctuations by managing aggregate demand through fiscal and monetary measures.

Stabilization Policy Refers to Policy Actions Aimed At