Which of the Following Statements About the Tax Cut Enacted

question 82

Multiple Choice

Which of the following statements about the tax cut enacted in 1981 is correct?

• A) The tax cut caused the recession of 1982.
• B) The tax cut and the recession of 1982 combined to produce one of the largest peacetime deficits ever experienced up to that time.
• C) The tax cut stimulated a large increase in economic activity and led directly to the balanced budget of 1982.
• D) The tax cut was opposed by supply-side economists.
• E) The tax cut was favored by Congress but opposed by the president and passed over his veto.

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Definitions:

First-In, First-Out

An inventory valuation method where the goods purchased or produced first are sold or used first.

Equivalent Units

A metric used in cost accounting to express the amount of work done by manufacturers who have partially completed units on hand at the end of an accounting period.

Work in Process-Assembly Department

Inventory account that tracks the cost of partially completed goods that are still in the production process in the assembly department.

Equivalent Unit

A concept used in cost accounting to represent a portion of work done on a product, quantified in terms of fully completed units.