Which of the Following Statements Are True

question 197

Multiple Choice

Which of the following statements are true?

• A)Big government was ushered in during the 1920s.
• B)Keynes believed budget deficits were good for the economy all the time.
• C)The classical economists believed recessions were hard to end without government intervention.
• D)Classical economics lost most of its popularity in the 1930s.

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Definitions:

Fixed Costs

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

Profit-Minimizing

A situation in which a business aims to reduce its profits to minimize taxes or for strategic reasons, contrary to typical profit-maximizing objectives.

Economic Profits

Economic Profits are the profit made by a company after deducting both explicit and implicit costs, representing the true profitability of the company.

Long Run

a period in which all factors of production and costs are variable, allowing firms to adjust all inputs.