Stabilization policy describes
A)government programs designed to prevent or shorten recessions and counteract inflation.
B)legislation that redistributes income.
C)policy that removes price controls.
D)policy that follows natural disasters.

Question

Quizplus · Accepted Answer

Stabilization policy refers to government activities aimed at stabilizing the economy by reducing the impact of economic fluctuations such as recessions and inflation. These activities may include fiscal policies like increasing government spending during an economic downturn, and monetary policies such as regulating interest rates to control inflation. The aim of stabilization policy is to stabilize the economy while ensuring long-term economic growth.

Stabilization Policy Describes