A Fiscal Policy in Which the Government Attempts to Offset

question 192

Multiple Choice

A fiscal policy in which the government attempts to offset any change in aggregate expenditures that would create a business cycle is called a:

• A)supply-side policy.
• B)regulatory policy.
• C)countercyclical fiscal policy.
• D)laissez-faire policy.

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Definitions:

Average Variable Costs

The total variable costs of production divided by the quantity of output produced.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance.

Average Variable Cost

The total variable cost per unit of output, obtained by dividing total variable costs by the quantity of output.