Appropriate Fiscal Policy in the U

question 190

Multiple Choice

Appropriate fiscal policy in the U.S.in 2009 would attempt to

• A)increase taxes.
• B)decrease aggregate supply.
• C)increase aggregate demand.
• D)decrease aggregate demand.

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Definitions:

Direct Materials

Raw materials that are directly used in the production of a product and can be easily attributed to that product.

Direct Labor

The cost of workers who can be directly traced to the production of products.

Overhead Cost

Indirect expenses related to the day-to-day operations of a business, such as rent, utilities, and administrative salaries.

Work in Process Inventory

Goods that are in the process of being produced but are not yet finished products in manufacturing.