Identify Each of the Following as (I)part of an Expansionary

question 89

Essay

Identify each of the following as (i)part of an expansionary fiscal policy,(ii)part of a contractionary fiscal policy,or (iii)not part of fiscal policy.
a.The personal income tax rate is lowered.
b.Congress cuts spending on defense.
c.College students are allowed to deduct tuition costs from their federal income taxes.
d.The corporate income tax rate is lowered.
e.The state of Nevada builds a new tollway in an attempt to expand employment and ease traffic in Las Vegas.

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Definitions:

Weighted-Average Method

A cost accounting method that averages the costs of goods available for sale for the calculation of the cost of goods sold and ending inventory.

Conversion Costs

The combined costs of direct labor and manufacturing overhead expenses required to convert raw materials into finished goods.

Work in Process

Refers to goods that are in various stages of being made within a factory but are not yet completed.

Processing Department

A division within a manufacturing facility where a specific type of production process is carried out, often part of a larger assembly line.