If the Government Were Able to Operate a "Cyclically Balanced

question 31

Multiple Choice

If the government were able to operate a "cyclically balanced budget," then the actual budget would

• A)be balanced every year.
• B)be balanced every four years.
• C)have surpluses during inflationary gaps.
• D)have surpluses during recessionary gaps.
• E)have deficits during inflationary gaps.

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Definitions:

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet.

Utilities Expense

Utilities expense refers to the cost incurred by a business for the consumption of utility services such as electricity, water, and gas.

Accounts Payable

Liabilities or amounts owed by a company to creditors for goods and services that have been purchased on credit but not yet paid for.

Journal

A chronological record where financial transactions are initially recorded using the double-entry accounting system before being transferred to accounts in the ledger.