An Example of Expansionary Fiscal Policy Is

question 102

Multiple Choice

An example of expansionary fiscal policy is

• A) lowering taxes.
• B) increasing taxes on everyone in the economy.
• C) decreasing the number of weeks an individual can receive unemployment.
• D) increasing taxes only on the top earners in the economy.
• E) increasing minimum wage.

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Definitions:

Total Cost

The sum of all expenses, variable and fixed, incurred in producing goods or services.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, typically decreasing as production scale increases.

Average Variable Cost

The total variable costs (costs that change with output level) divided by the quantity of output produced.

AVC

Average Variable Cost; the cost of variable inputs divided by the quantity of output produced.