Activists Believe That

question 42

Multiple Choice

Activists believe that

• A) discretionary changes in macroeconomic policy can help smooth the ups and downs of the business cycle.
• B) balancing the federal budget is of primary importance to economic stability.
• C) the economy's self-correcting mechanism, if not stifled by perverse policies, will prevent prolonged periods of high unemployment.
• D) the M1 money supply should be increased at a steady annual rate.

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Definitions:

Transactions

Financial events that affect the assets, liabilities, or equity of a company and can be measured in monetary terms.

Journal

A record where all financial transactions are entered initially, before being posted to individual accounts in the ledger, following the double-entry bookkeeping.

Chronologically

In the sequence of time, where events or records are arranged in the order of their occurrence.

Journal Entry

A journal entry is a record in accounting that logs all the financial transactions of a business, capturing their effects on the accounts.