What Is the Effect of Counter-Cyclical Fiscal Policy on the Price

question 88

Multiple Choice

What is the effect of counter-cyclical fiscal policy on the price level?

• A)It will increase in the case of a recessionary gap.
• B)It will increase in the case of an inflationary gap.
• C)It will decrease in the case of a recessionary gap.
• D)It will have no effect in the case of a recessionary gap.
• E)It will have no effect in the case of an inflationary gap.

---

Definitions:

Delivery Cycle Time

The complete duration from the reception of an order to the delivery of the product to the client.

Queue Time

The period during which materials or parts wait in line to be processed in manufacturing.

Quality Cost Report

A detailed analysis outlining the expenses related to ensuring the quality of products or services, including costs of prevention, appraisal, and failures.

Prevention Costs

Costs associated with actions taken to avoid defects in products or services before they happen.