During the 1970s,demand-Management Policy

question 124

Multiple Choice

During the 1970s,demand-management policy:

• A)continued to be highly successful in curing the economy's economic problems.
• B)was found to be highly unsuitable in periods of stagflation such as the decade of the 1970s.
• C)was so unsuccessful that economists advised a return to the pre-World War II philosophy of fiscal policy.
• D)was unsuccessful because automatic stabilizers no longer influenced the economy.
• E)was unsuitable because it affected aggregate supply more than aggregate demand.

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Definitions:

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating how much each unit contributes to covering fixed costs and generating profit.

Break-Even Point

The production level at which total revenues equal total expenses, and there is neither profit nor loss.

Total Revenue

The total income generated from business activities before any expenses are subtracted.

Total Cost

Represents the complete amount of expenses incurred by a business in producing goods or services.