Government Policies That Are Used to Affect Planned Aggregate Expenditure

question 78

Multiple Choice

Government policies that are used to affect planned aggregate expenditure, with the objective of eliminating output gaps, are called ________ policies.

• A)structural
• B)cyclical
• C)productivity
• D)stabilization

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Definitions:

Market Value

The price at which an asset or service could be bought or sold in a real or virtual marketplace, reflecting its current worth.

Revaluation Method

An accounting method for periodically reassessing the value of an asset, usually upward, to reflect its current value.

Liquidation Value

The estimated amount that would be realized from the sale of a company's assets, after paying off its liabilities, if the company were to be liquidated.

Accrual

The accounting principle that income and expenses are recognized when they are earned or incurred, regardless of when the cash is actually received or paid.