The Automatic Mechanism ________ the Price Level in the Case

question 181

Multiple Choice

The automatic mechanism ________ the price level in the case of ________ and ________ the price level in the case of ________.

• A)raises; recession; lowers; expansion
• B)lowers; expansion; lowers; recession
• C)raises; expansion; raises; recession
• D)lowers; recession; raises; expansion
• E)lowers; expansion; lower; recession

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Definitions:

Minimize

To reduce something to the smallest possible level or amount.

Profits

The financial gains obtained when revenues exceed the costs and expenses incurred to operate the business.

Total Costs

The sum of all costs incurred by a business in producing a certain amount of goods or services.

Variable Costs

Costs that change in proportion to the level of goods or services a business produces.