Which of the Following Are Accurate Arguments Suggesting That the Fiscal

question 64

Multiple Choice

Which of the following are accurate arguments suggesting that the fiscal stimulus did work?

• A)Real GDP growth moved from negative to positive in 2009.
• B)Employment increased in 2009.
• C)The economy has natural self-correcting mechanisms.
• D)The return on bailout assets reduced the deficit.

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales activities within a certain range or period.

Flexible Budget

A budget with the capacity to alter in response to shifts in activity volume or level.

Employee Salaries

The total amount paid to employees for their services over a specific period.

Wages

Payments made to employees as compensation for their labor, calculated on an hourly, daily, or piecework basis.