If the Economic Problem Is Low Productivity and High Unemployment,the

question 19

Multiple Choice

If the economic problem is low productivity and high unemployment,the fiscal policy action on the demand side would be to

• A)increase taxes.
• B)cut business taxes.
• C)increase spending.
• D)decrease spending.
• E)None of these answers is correct.

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Definitions:

Accounts Receivable

The amounts owed to a business by its customers for sales made on credit, considered a current asset on the balance sheet.

Accounts Payable

Obligations of a business to settle short-term debt with creditors or suppliers.

Capital Gain/Loss

The increase (gain) or decrease (loss) in the value of an investment or property from its purchase price.

Depreciation Life

The estimated period over which a tangible asset is expected to be used in business operations, for the purpose of calculating depreciation.