Use the Following Information for Questions O' Hara Company Began $2011 .$

question 5

Multiple Choice

Use the following information for questions O' Hara Company began operations on December 1,2011 . Presented below is selected information related to O' Hara Company at December 31, $2011 .$

-Net income for the month of December is

• A)£27,000
• B)£42,000
• C)£56,000
• D)£66,000

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Definitions:

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and progressive taxes, that automatically adjust to stabilize economic fluctuations.

Business Cycle

The natural rise and fall of economic growth over time, characterized by periods of expansion, peak, contraction, and trough.

Federal Government

The national government of a federal country, where powers are divided between central authority and constituent political units, such as states or provinces.

Discretionary Fiscal Policy

Government policy actions that involve changing government spending and taxation in order to influence the economy.