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Introduction to Economics 2
Introduction to Economics 2 Deneme Sınavı
Introduction to Economics 2 Deneme Sınavı Sorusu #349485
Introduction to Economics 2 Deneme Sınavı Sorusu #349485
Which of the following policies below can be used to stabilize the fluctuations in production and employment?
Fiscal
|
Supply side
|
Recovery
|
Monetary |
Contraction |
Yanıt Açıklaması:
One of the government’s tools to affect the economy is to collect taxes and to make expenditures, i.e. fiscal policy. A government collects taxes from households and businesses and uses these funds in a changing scale from producing weapons to building parks, from paying pensions to building highways. The scale and composition of these taxes and expenditures have a significant effect on the economy. As mentioned before, according to Keynes’ basic opinion brought to agenda in 1930s, fiscal policy can be used to stabilize the fluctuations in production and employment.
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