Activists and Nonactivists Both Believe That

question 95

Multiple Choice

Activists and nonactivists both believe that

• A) the self-corrective mechanism of a market economy works quite well.
• B) macro-policy should seek to minimize economic fluctuations, keep the inflation rate low, and establish an environment consistent with strong economic growth.
• C) discretionary monetary and fiscal policy can be used successfully to speed the adjustment process and reduce the swings of the business cycle.
• D) policies that stimulate aggregate demand can reduce the long-term rate of unemployment.

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Definitions:

Finished Goods

Items that have completed the manufacturing process but have not yet been sold or distributed to end-users.

Materials Ledger

A record keeping system that tracks the quantities and costs of raw materials used and on hand in the manufacturing process.

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary source of information for the financial statements.

Receiving Report

A document usually prepared by the receiving department detailing the goods received by a business, which is then used to verify invoices before payment.