Fed Policies Since the Mid-1980s Have Been Intended to

question 77

Multiple Choice

Fed policies since the mid-1980s have been intended to

• A)steepen the growth path of natural real GDP.
• B)taper down the growth rate of actual real GDP as it approaches natural real GDP.
• C)accelerate the growth rate of natural real GDP whenever actual real GDP exceeds it.
• D)use the "runway" of natural real GDP as a springboard to faster growth.

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Definitions:

Income

The amount of revenue that remains after deducting the costs, expenses, and taxes related to earning that revenue.

Break-even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and one is "breaking even."

Contribution Margin

The amount remaining from sales revenue after all variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.

Variable Costs

Costs that change in proportion to the level of production or sales activity within a business.