In the Mid-1990s,Canada Was Experiencing Large Budget Deficits,high Levels of Government

question 37

Multiple Choice

In the mid-1990s,Canada was experiencing large budget deficits,high levels of government expenditures as a share of the economy,and double-digit unemployment rates.Canadian policy-makers responded to this situation by

• A)cutting taxes to stimulate aggregate demand and reduce unemployment.
• B)increasing government spending to stimulate aggregate demand and reduce unemployment.
• C)cutting government spending.
• D)shifting the budget toward a larger deficit.

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Definitions:

Income Statements

Income Statements are financial reports that summarize a company's revenues, expenses, and profits or losses over a specific period, typically a fiscal quarter or year.

Trend

A general direction in which something is developing or changing.

Adjusted Trial Balance

A trial balance after adjustments, showing the balances of all accounts including those adjusted, which will be used for preparing financial statements.

Supplies Expense

An accounting term referring to the cost consumed in using up supplies such as office materials over a specific accounting period.