If the Economy Falls into a Recession, Which of the Following

question 187

Multiple Choice

If the economy falls into a recession, which of the following responses constitutes the use of automatic fiscal policy?

• A) an existing system to make government payments to the growing ranks of unemployed workers
• B) an income tax cut voted on by Congress and quickly signed by the President
• C) a new program to fund local governmentsʹ hiring of 100,000 street sweepers within a year
• D) All of the above answers are correct.

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Definitions:

Income Activities

Actions or operations that generate revenue or income for a business.

Manufacturing Business

A type of business that produces finished goods from raw materials through a combination of manpower, machines, and chemical processes.

Statement of Stockholders' Equity

A financial document that shows changes in the equity section of the balance sheet over a period, including net income, dividend payments, and issuance or repurchase of stock.

Stockholder's Equity

The interest in a corporation's assets that exists after debts are paid off, reflecting a stake in ownership.