(1) the Composite Index of Leading Indicators Turns Downward for Three

question 215

Multiple Choice

(1) The composite index of leading indicators turns downward for three consecutive months; (2) Economists reach agreement that the economy is moving into a recession; (3) A tax cut is proposed in Parliament; (4) The tax cut is passed by Parliament; (5) Consumption spending begins to rise, aggregate demand increases, and the economy begins to recover.Refer to the above information.The administrative lag of fiscal policy is reflected in events:

• A)1 and 2.
• B)2 and 3.
• C)3 and 4.
• D)4 and 5.

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Definitions:

Perpetual Inventory System

The inventory system of a company that keeps a continuous (perpetual) record of inventory on hand and of the cost of goods sold.

Periodic Inventory System

An accounting method where inventory levels and cost of goods sold are determined at set intervals, typically annually.

Perpetual Inventory System

An inventory management approach where records of inventory levels are updated on a continuous basis as transactions occur.

Merchandise Inventory

Merchandise Inventory refers to the products a company has in stock that are ready to be sold, represented as an asset on the balance sheet.