Which of the Following Statements Is Correct

question 36

Multiple Choice

Which of the following statements is correct?

• A)According to the supply-side view,the tax cuts during Bush's first term in office were supposed to increase aggregate supply and move the economy towards higher output but a higher price level.
• B)President Bush pushed for significant cuts in government spending during his first term in office in order to assure that demand was not overly stimulated and to hold the budget deficit as low as possible
• C)The Bush tax cuts were aimed at maximizing the increase in aggregate demand in order to stabilize output.
• D)None of the above

---

Definitions:

Year-End Information

Data and records compiled at the end of a fiscal year used for accounting and tax purposes, including final balances, inventories, and financial statements.

Perpetual Inventory System

An accounting method that continuously updates inventory records for sales and purchases, providing a highly current account of inventory on hand.

Net Method

An accounting technique where discounts for prompt payment are calculated and recorded immediately, reducing the purchase cost of inventory.

Allowance for Sales Discounts

An account used in bookkeeping to estimate the reduction in revenue due to sales discounts that customers are expected to take advantage of.