How Did China's Fiscal Stimulus Policies Compare to Those in the United

question 57

Multiple Choice

How did China's fiscal stimulus policies compare to those in the United States during the Great Recession?

• A) China used a monetary policy stimulus, and the U.S. used a fiscal policy stimulus.
• B) China's stimulus was the same percentage of GDP as the U.S. stimulus.
• C) China's stimulus was a smaller percentage of GDP than the U.S. stimulus.
• D) China's stimulus was a larger percentage of GDP than the U.S. stimulus.

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Definitions:

Positive Output

The result of production processes that lead to an increase in the quantity of goods or services produced.

Long-Run Total Cost

The cumulative expense incurred by a firm when all inputs are variable, intended to capture the idea of planning and adjustment in the face of changing economic landscapes.

Maximize Profits

A business objective aiming to achieve the highest possible financial gain by managing costs and optimizing revenue streams in a given market environment.

Long-Run Cost Function

A graphical or mathematical representation showing the lowest cost at which a firm can produce any given level of output in the long run, where all inputs are variable.