Which of the following was not characteristic of the U.S. economy during the Great Depression?

If firms are price setters, a small decline in the demand for their outputs will cause them to

A) reduce price and reduce the level of output produced. B) reduce output in the short run, but reduce price in the long run. C) reduce price in the short run, but reduce output only in the long run. D) increase price in the short run to offset the effect on profits of a decline in output.

The tax base of the value added tax and a turnover tax are the same

a. True b. False