Which of the following policies would be advocated by someone who wants the government to follow an active stabilization policy when the economy is experiencing severe unemployment?
A)Decrease the money supply
B)Increase government expenditures
C)Increase taxes
D)Increase interest rates

Question

Quizplus · Accepted Answer

An active stabilization policy to combat severe unemployment typically involves measures to stimulate economic activity and increase demand for labor. Increasing government expenditures can directly inject money into the economy, boosting demand for goods and services, and in turn, increasing employment.

Which of the Following Policies Would Be Advocated by Someone