Programs That Automatically Increase Government Spending (Relative to Revenue) During

question 54

Multiple Choice

Programs that automatically increase government spending (relative to revenue) during a recession and automatically decrease government spending (relative to revenue) during an economic boom are called:

• A) discretionary fiscal policy.
• B) supply-side programs.
• C) automatic stabilizers.
• D) tax credits.

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Definitions:

Merchandise Inventory

Goods available for sale to customers, which can include both purchased products and those manufactured by the company.

Monthly Expenses

Recurring costs incurred by a business or individual that are expected and budgeted on a monthly basis.

Accounts Payable

The amounts a company owes to suppliers for goods and services purchased on credit.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.