Government Programs That Automatically Shift the Government Budget Toward a Deficit

question 77

Multiple Choice

Government programs that automatically shift the government budget toward a deficit during recessions and a surplus during recoveries are called

• A) discretionary fiscal policy.
• B) automatic stabilizers.
• C) progressive taxation.
• D) price deflators.

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Definitions:

Applied Factory Overhead

The portion of factory overhead costs assigned to each unit of production, based on an estimated or predetermined rate.

Electrical Motor

A device that converts electrical energy into mechanical energy, commonly used in appliances, industrial equipment, and vehicles.

Manufacturing Overhead

includes all indirect costs associated with the production process, such as utilities, maintenance, and salaries of non-direct labor.

Standard Cost System

An accounting method that uses predetermined costs for product costing and decision-making purposes.