In 2009, the Obama Administration Advocated and Congress Passed a Massive

question 20

Multiple Choice

In 2009, the Obama administration advocated and Congress passed a massive spending and tax relief package of about $800 billion to stimulate aggregate demand. This policy would be favored by

• A) Keynesian economists but not new Keynesian economists.
• B) monetarists but not new classical economists.
• C) Keynesian and new Keynesian economists.
• D) monetarists and new Keynesian economists.

---

Definitions:

Closing Entries

At the close of an accounting period, records are made to move balances from interim accounts to enduring accounts.

Accounting Cycle

The sequence of steps followed in the accounting process to track and report financial transactions, from the initial transaction to the financial statements.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including a balance sheet, income statement, and cash flow statement.

Post-Closing Trial Balance

A list of all accounts and their balances after closing entries are made, serving to verify the equality of debits and credits.