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.

A. Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
B. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
C. Changes in government purchases and taxation must be passed by both houses of Congress and signed by the president.
D. Businesses make investment plans many months in advance.

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

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