$$\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 25 \\2 & 23 \\3 & 21 \\4 & 19 \\5 & 17\end{array}$$

question 33

Multiple Choice

$$\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 25 \\2 & 23 \\3 & 21 \\4 & 19 \\5 & 17\end{array}$$
-If the marginal cost were $21,output would be

• A)1.
• B)2.
• C)3.
• D)4.
• E)5.

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Definitions:

Fiscal Expenditure

Government spending, including spending on goods and services, welfare, and public works, financed through taxation or borrowing.

Taxes

Taxes are compulsory financial charges or levies imposed by a government on individuals or entities to finance government spending and various public expenditures.

Aggregate Demand-Aggregate Supply Model

A macroeconomic model that explains price level and output through the relationship between aggregate demand and aggregate supply.

Long-Run Equilibrium

Refers to a state in an economy where all factors of production are efficiently utilized, and supply equals demand, leading to stable prices and full employment over time.