When costs that vary with the level of output are divided by the output, you have calculated:
a. total changing cost.
b. total fixed cost.
c. average fixed cost.
d. average variable cost.
Question 2
Keynes believed that the best method for boosting an economy during a recession was to:
a. increase money supply so that individuals would have more incentive to spend.
b. cut government spending and increase taxes to reduce or even eliminate fiscal deficit.
c. increase government spending and cut taxes so that consumers could spend more.
d. cut both government spending and taxes to reduce government expenditure in the economy.
e. increase both government spending and taxes to increase the role of government in the economy.
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