In Response to the Deep Economic Downturn in the US

question 1

Multiple Choice

In response to the deep economic downturn in the US in 2008 and 2009,the US

• A)reduced taxes.
• B)increased government spending.
• C)increased the supply of money.
• D)All of the above are correct.

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Definitions:

Economic Profits

The profit a company makes after deducting both its explicit and implicit costs, differing from accounting profits.

Marginal Costs

The price increase associated with the creation of an extra unit of a product or service.

Average Total Costs

The total costs of production (fixed and variable costs combined) divided by the quantity of output produced.

Competitive Retail

Retail markets characterized by the presence of multiple sellers, leading to competitive pricing and variety for consumers.