Which of the Following Policies Would Be Advocated by Someone

question 39

Multiple Choice

Which of the following policies would be advocated by someone who wants the government to follow an active stabilization policy when the economy is experiencing severe unemployment?

• A)decrease the money supply
• B)increase government expenditures
• C)increase taxes
• D)All of the above are correct.

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Definitions:

Double Time

A rate of payment that is twice the regular wages, often paid for working on holidays or outside of normal working hours.

Time and a Half

An overtime pay rate, typically 1.5 times the employee's regular hourly wage, paid for hours worked beyond the standard workweek.

FICA Tax

Federal Insurance Contributions Act tax, a U.S. federal payroll tax funding Social Security and Medicare benefits.

Federal Income Tax

A tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.