The U.S. economy remains subject to frequent boom and bust cycles. Throughout U.S. history, policymakers after the Great Depression often
(a) raise or lower taxes and spending to adjust aggregate demand and thereby smooth the
business cycle.
(b) take a hands-off approach to the business cycle.
(c) consult with world organizations on how to address cyclic fluctuations.
(d) close economies to international trade.
Question 2
Labor market regulations in European Union countries
a. do not contain limitations on plant closing but do have provisions for mandatory severance pay that may discourage firms from expanding employment.
b. include limitations on plant closing but have no provisions for mandatory severance pay that may discourage firms from expanding employment.
c. neither entail limitations on plant closing nor provisions for mandatory severance pay that may discourage firms from expanding employment.
d. include limitations on plant closing and provisions for mandatory severance pay that may discourage firms from expanding employment.
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