Which of the Following Statements Is True

question 115

Multiple Choice

Which of the following statements is true?

• A)Federal budget deficits became progressively smaller during the 1990s and turned into a surplus by 1998.
• B)Federal spending declined relative to GDP,while federal revenues rose relative to GDP during the 1980s.
• C)Functional finance says that policy makers should be concerned less with the economy's potential output and more with balancing the budget annually.
• D)A disadvantage of functional finance is that it increases the level of unemployment during recessions.
• E)A disadvantage of annual financed budget is that it dampens swings in the business cycle without increasing the national debt.

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Definitions:

Directing

In management, directing refers to the process of guiding, leading, and overseeing employees to achieve organizational goals.

Planning

The process of setting objectives and determining the actions necessary to achieve them.

Product Cost

The total cost associated with making a product, including direct labor, materials, and manufacturing overhead.

Period Cost

Expenses that are incurred by a business during a specific period but are not directly tied to the production process, such as administrative and selling expenses.