According to Friedman, Governments Need To, Can, and Therefore Should

question 18

True/False

According to Friedman, governments need to, can, and therefore should seek to stabilize their economies through aggregate demand management.

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Definitions:

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., within a particular time period.

Marginal Product

The additional output generated by employing one more unit of a factor of production.

Output Level

The total quantity of goods and services that a firm or industry produces over a set period.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service.