Assume That the Democrats Always Had a Policy of High

question 41

Multiple Choice

Assume that the Democrats always had a policy of high money growth whereas the Republicans followed a policy of low money growth, and the economy had a standard Phillips curve. Then, if the two parties took regular terms in office:

• A)there would be no political business cycle, but inflation would be higher under the Democrats.
• B)there would be no political business cycle, but inflation would be higher under the Republicans.
• C)unemployment would be lower under the Democrats but inflation would be higher.
• D)both unemployment and inflation would be higher under the Democrats.

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Definitions:

Internal Control

Processes and procedures put in place by a company to ensure the integrity of financial and accounting information, enhance accountability, and prevent fraud.

Sales Tax Payments

Payments made to local, state, or federal tax authorities for sales tax collected from customers on taxable sales.

Government Entities

Organizations or institutions that are part of the public sector, operated by the government at the federal, state, or local level, and responsible for implementing laws and policies.

Enter Bills

The process of recording invoices from suppliers or creditors in the accounting system, often as a precursor to issuing payments.