Which of the Following Is True

question 107

Multiple Choice

Which of the following is true?

• A)​Sometimes the Fed moves to partly offset or even neutralize the intended effects of fiscal policy changes.
• B)​If a consensus was reached between fiscal and monetary policy makers, you would not expect contractionary fiscal policy and expansionary monetary policy to be adopted at the same time.
• C)​If policymakers' timing is off, expansionary monetary policy could cause an inflation problem rather than reducing a high unemployment problem.
• D)​All of the above are true

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Definitions:

Positive Profits

Financial gains realized when the total revenues of a business exceed its total costs.

Pure Monopolist

A single seller in a market that produces a unique product without close substitutes, having significant control over the market price.

Profit-Maximizing Output

The level of production at which a company achieves the highest possible profit, where marginal cost equals marginal revenue.

Short-Run Equilibrium

The condition where supply and demand are balanced at a particular level of output and price over a short period.