Actions on the Part of Monetary and Fiscal Policymakers That

question 51

Multiple Choice

Actions on the part of monetary and fiscal policymakers that are undertaken in response to some change in the overall economy are known as

• A) nondiscretionary policymaking.
• B) passive policymaking.
• C) creative policymaking.
• D) active policymaking.

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Definitions:

Total Revenue

The entire amount of income received by a firm from selling its goods or services before any expenses are deducted.

Total Cost

The sum of fixed and variable costs incurred by a firm in producing and offering a product or service for sale.

Fixed Cost

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Economic Profit

The difference between the total revenue earned by a business and the total costs (both explicit and implicit) of all resources used.