The 2009 Fiscal Stimulus Package Did Not Work ________

question 35

Multiple Choice

The 2009 fiscal stimulus package did not work ________.

• A)in that the IS curve did not shift to the right
• B)because most of the intended increase in government spending took too long to kick in
• C)because the increase in government spending was not enough to offset the decline in autonomous expenditure
• D)all of the above
• E)none of the above

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Definitions:

Consolidation Entry

Journal entries made in the consolidation process to adjust and eliminate intercompany transactions between parent and subsidiary entities in consolidated financial statements.

Inventory Transfer

The process of moving goods from one location to another within the same business entity.

Cost of Goods Sold

Immediate expenses incurred in the production of a company’s merchandise, including labor and material costs.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overheads, payroll, taxation, and interest payments.