6. Stabilization policies can best be described as policies that:

A. attempt to eliminate recession and/or inflation in the economy.

B. use changes in government spending to promote an equitable income distribution.

C. use changes in the money supply to lower income tax returns.

D. eliminate poverty through the adoption of work incentives.

I'm stuck between A and B.

A is the best answer.

Stabilization doesn't mean evening up the the distribution of income.

To determine the correct answer, let's break down the options and understand what each one means:

A. Attempt to eliminate recession and/or inflation in the economy.
This option suggests that stabilization policies aim to address economic fluctuations by targeting recessions and inflation. The aim is to stabilize the economy by reducing the impact of these fluctuations.

B. Use changes in government spending to promote an equitable income distribution.
This option suggests that stabilization policies focus on using changes in government spending to ensure a fair and balanced distribution of income. The goal is to reduce income inequality by implementing appropriate spending measures.

Now, let's consider which option best describes stabilization policies.

Stabilization policies primarily focus on addressing economic fluctuations such as recessions and inflation. They aim to maintain price stability, promote sustainable economic growth, and minimize economic disruptions. While efforts to promote equitable income distribution can be a part of some government policies, it is not the primary goal of stabilization policies.

Therefore, the correct answer is A. Stabilization policies can best be described as policies that attempt to eliminate recession and/or inflation in the economy.