During and Following the Severe Recession of 2008-2009,the Fiscal Policy

question 30

Multiple Choice

During and following the severe recession of 2008-2009,the fiscal policy of the United States was

• A)similar to the response of Japan to a severe recession during the early 1990s.
• B)similar to the response of Canada to an economic crisis during the latter half of the 1990s.
• C)dramatically different than the response of Japan to a severe recession during the early 1990s.
• D)similar to the highly successful fiscal policy of the United states during the 1990s: government expenditures were reduced as a share of GDP and the budget was shifted toward a surplus.

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Definitions:

Standard Costing

A cost accounting method that uses standard costs for direct materials, labor, and overhead to help managers control costs by comparing expected costs to actual costs.

Isolating Variances

A process in managerial accounting for identifying and analyzing differences between actual and expected performance.

Direct Materials

Raw materials directly traceable and assignable to a manufactured product as it is being produced.

Direct Labour

The labor costs directly attributable to the production of goods or the provision of services.