When the Government Decreases Spending or Increases Taxes to Slow

question 2

Multiple Choice

When the government decreases spending or increases taxes to slow economic expansion,the government is conducting ________ policy.

• A) expansionary monetary
• B) expansionary fiscal
• C) contractionary monetary
• D) contractionary fiscal
• E) neither monetary policy nor fiscal

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Definitions:

Materials Quantity Variance

The difference between the actual amount of materials used in production and the standard amount expected to be used, multiplied by the standard cost of the materials.

Standard Costs

Predetermined costs for products or services, used as a benchmark for performance evaluation.

Direct Labor-Hours

Overall working hours expended by personnel directly engaged in the production of goods or delivery of services.

Materials Quantity Variance

The difference between the expected and actual quantity of materials used in production, reflecting efficiency in materials usage.