If Unemployment Is the Most Significant Problem in an Economy

question 60

Multiple Choice

If unemployment is the most significant problem in an economy, which of the following actions would be an appropriate fiscal policy response?

• A)A decrease in taxes
• B)A decrease in transfer payments
• C)A decrease in the federal budget deficit
• D)An increase in the federal budget surplus
• E)A decrease in government purchases

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Definitions:

Fixed-Price Contract

A contract where the service or product delivery price is agreed upon before the work begins, regardless of the actual costs incurred during the project.

IFRS

International Financial Reporting Standards, a set of accounting rules followed by companies internationally to maintain consistency in financial reporting.

Completed Contract Method

An accounting method that recognizes revenue and expenses of a long-term project only when the project is completed, often used in construction accounting.

Analysts' Earnings Expectations

Forecasted earnings per share (EPS) estimates made by financial analysts for a company's future reporting period.