Use the Following to Answer Questions

question 27

Multiple Choice

Use the following to answer questions:
-(Figure: Fiscal Policy Options) Refer to Figure: Fiscal Policy Options. If the aggregate demand curve is AD:

• A) a contractionary fiscal policy may be warranted.
• B) an expansionary fiscal policy may be warranted.
• C) no change in discretionary fiscal policy is warranted.
• D) the economy is in an inflationary gap.

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Definitions:

Perpetual Inventory System

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

Accounts Payable

The amount of money a company owes creditors (suppliers, etc.) in return for goods and services they have delivered.

Merchandise Inventory

The value of a company's current inventory of goods available for sale.

Perpetual System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.