Which of the Following Is True of the Golden Age

question 111

Multiple Choice

Which of the following is true of the Golden Age of fiscal policy of the 1960s?

• A)Fiscal policy was used to prevent output from expanding in 1964.
• B)Lyndon B.Johnson cut income tax rates to reduce inflationary pressures in the economy
• C)A tax cut was introduced to increase savings and unemployment.
• D)A tax cut increased disposable income and consumption.
• E)The unemployment rate rose by 5 percent for the first time in seven years

---

Definitions:

Variable Electrical Costs

Costs associated with electricity that vary depending on the amount of usage or consumption over a period.

High-low Method

A technique in cost accounting used to determine the variable and fixed components of a company's costs by analyzing the highest and lowest levels of activity.

Machine Hour

A measure of the amount of time a machine is operated, used in cost accounting to allocate costs to products based on machine usage times.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.