If the Economy Falls into a Recession, Which of the Following

question 249

Multiple Choice

If the economy falls into a recession, which of the following responses constitutes the use of automatic fiscal policy?

• A) an income tax cut voted on by Congress and quickly signed by the President
• B) an existing system to make government payments to the growing ranks of unemployed workers
• C) a new program to fund local governments' hiring of 100,000 street sweepers within a year
• D) All of the above answers are correct.

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Definitions:

Current Asset

Resources anticipated to be changed into cash, disposed of, or used up either within a year or over the course of the business's usual operational cycle, depending on which timeframe extends further.

Revenue

The total amount of income generated by the sale of goods or services related to a company's core business activities.

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been subtracted from total revenue.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.