When Policy Makers Want to Get Out of a Recession

question 69

Multiple Choice

When policy makers want to get out of a recession, they might respond with

• A) EMP.
• B) borrowing from other countries.
• C) lowering taxes.
• D) none of the above.

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Definitions:

Marginal Value

The additional satisfaction or utility received by consuming one more unit of a good or service.

Consumer's Demand

The desire of purchasers, users, or consumers for specific goods or services at a given price over a specified period.

Substitution Effect

The economic principle that as prices rise or incomes decrease, consumers will replace more expensive items with less costly alternatives.

Hamburger

A popular food item consisting of a cooked patty of ground meat, typically beef, placed inside a sliced bread roll or bun.