During Which Time Should the Multiplier Be Largest

question 85

Multiple Choice

During which time should the multiplier be largest?

• A)Normal times
• B)Times of war
• C)In the middle of expansions
• D)Times of stagflation

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Definitions:

Cartel

An agreement among several producers to obey output restrictions in order to increase their joint profits.

Marginal Cost

The cost incurred from producing one additional unit of a product or service.

Output

The amount of goods or services produced by a business, industry, or economy.

Oligopolistic

Pertaining to an oligopoly, describing a market dominated by a small number of firms, leading to strategic behaviors among them.