Regarding the Fiscal Policy Responses to the 2007-2009 Recession, the Congressional

question 10

Multiple Choice

Regarding the fiscal policy responses to the 2007-2009 recession, the Congressional Budget Office (CBO) found that:

• A)the Bush Administration's fiscal policy worked, but the Obama Administration's did not.
• B)the Obama Administration's fiscal policy worked, but the Bush Administration's did not.
• C)both the Bush Administration's fiscal policy and the Obama Administration's fiscal policy worked.
• D)neither the Bush Administration's fiscal policy nor the Obama Administration's fiscal policy worked.Economic historians report that both tax cuts and increased government spending were successful in stimulating the U.S.economy.

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Definitions:

AVC

Stands for Average Variable Cost, which is the total variable costs (costs that vary with production levels) divided by the quantity of output produced.

AVC

Average Variable Cost refers to the cost of variable inputs divided by the quantity of output produced.

ATC

Average Total Cost; the total cost divided by the quantity produced, representing the cost per unit of output.

AFC

Stands for Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.