Note:- Please give all possible answer for both question options are given below. 8. Using policy to stabilize the economyThe government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply.The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.The current tax system acts as an automatic stabilizer.Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.Businesses make investment plans for many months in advance.Which of the following are examples of automatic stabilizers? Check all that apply.Corporate income taxesThe discount ratePersonal income taxes

The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering…

Answered: Which of the following are arguments in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Note:- Please give all possible answer for both question options are given below.

8. Using policy to stabilize the economy

The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy.

Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply.

The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.

The current tax system acts as an automatic stabilizer.

Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.

Businesses make investment plans for many months in advance.

Which of the following are examples of automatic stabilizers? Check all that apply.

Corporate income taxes

The discount rate

Personal income taxes

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