Behavioral economics is the study of situations in which people make rational choices

The arguments against the use of active stabilization policy include all of the following except:

a. the responsiveness of voluntary unemployment to changes in GDP. b. the existence of policy lags. c. weak macroeconomic forecasting abilities. d. the possibility of policy errors because of limited information.

Average fixed cost

A) does not change as total output increases or decreases. B) varies directly with total output. C) falls continuously as total output expands. D) rises as the output is expanded.