In a Recession,some Aspects of Fiscal Policy Can Stimulate Aggregate

question 201

Multiple Choice

In a recession,some aspects of fiscal policy can stimulate aggregate demand without deliberate actions of policymakers.This occurs as a result of:

• A) crowding out.
• B) the multiplier effect.
• C) automatic stabilizers.
• D) Ricardian equivalence.

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Definitions:

Perpetual Inventory Records

The continuous tracking of inventory levels and updates in real-time, showing the quantity of inventory on hand at all times.

Credit for Returns

A financial adjustment made by a seller to the account of a buyer to reflect returned goods.

Discount Period

The discount period is the time frame during which a buyer can take advantage of a purchase discount offered by the supplier for early payment.

Total Amount Collected

The sum of money received from various sources, including sales, investments, financing, and other business activities.