Which of the Following Is an Example of Discretionary Fiscal

question 57

Multiple Choice

Which of the following is an example of discretionary fiscal policy?

• A)An increase in the number unemployment benefit payments during a recession due to rising unemployment.
• B)An increase in income tax receipts during an expansion because incomes are rising.
• C)Tax increases to combat rising inflation.
• D)A decrease in income tax receipts during a recession because incomes are falling.

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Definitions:

Total Factory Overhead Cost Variance

The difference between the actual overhead costs incurred and the standard overhead costs assigned to production over a given period.

Factory Overhead Cost Budget

Budget that estimates the cost for each item of factory overhead needed to support budgeted production.

Total Variable Cost

The sum of all costs that vary directly with the level of production or sales volume.

Total Fixed Costs

The combined sum of all costs that do not change with the level of production or sales over a certain period.