Automatic Stabilisers

question 28

Multiple Choice

Automatic stabilisers:

• A) reduce the problems that lags cause in using fiscal policy as a stabilisation tool
• B) are changes in fiscal policy that stimulate aggregate demand automatically when the economy goes into a recession
• C) are changes in fiscal policy that restrain aggregate demand automatically when the economy is growing too fast
• D) none of the above
• E) all of the above

Appreciate the impact of demographic and social changes, such as movements between urban and rural areas or changes in the labor force composition, on GDP.

Understand the recording of raw materials, work in process, finished goods, and manufacturing overhead in a job order cost system.

Calculate predetermined overhead rates and apply overhead to manufacturing costs.

Prepare journal entries for transactions involving raw materials, labor, overhead, and the sales process.

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Definitions:

Ego

In psychoanalytic theory, the part of the personality that mediates between the desires of the id and the constraints of the superego, often associated with self-esteem and self-identity.

Id

In Freudian psychology, the part of the human psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Video Games

Electronic games that involve interaction with a user interface to generate visual feedback on a two- or three-dimensional video display device.

Laptop

A portable personal computer with a clamshell form factor, suitable for mobile use and equipped with a keyboard and screen.