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What is mean by stabilization policy?
Taming the Business Cycle:
To decrease the severity of recessions policy efforts undertaken are termed as stabilization policy.
a. One form of stabilization policy is monetary policy, changes within the quantity of money or the interest rate.
b. The second form of stabilization policy is fiscal policy, changes within tax government or policy spending, or both.
Fiscal Policy The government's use of spending and taxation to affect the stage of macroeconomic moment. In theory, weak economic activity needs simulative fiscal policy, which
A businessman invested $ 4000.00 as his fixed cost in a new venture that produces batteries. Each of these batteries cost $150.00 to manufacture and he sells each battery for $180.
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