Expansionary Fiscal Measures, Such as More Government Spending and Tax

question 63

Multiple Choice

Expansionary fiscal measures, such as more government spending and tax cuts designed to reduce unemployment, are called:

• A)fiscal austerity.
• B)fiscal stimulus.
• C)automatic stabilizers.
• D)maturity transformation.

---

Definitions:

Income-smoothing

A strategy used by companies to stabilize their earnings over a period by using reserves to reduce fluctuations in income.

ASPE

Accounting Standards for Private Enterprises; a set of accounting guidelines for private companies in Canada.

IFRS

International Financial Reporting Standards (IFRS) are a set of accounting rules and standards issued by the International Accounting Standards Board (IASB) that aim to bring consistency to financial reporting across the globe.

Condensed Income Statements

A simplified version of an income statement that presents only the most essential information, typically revenue, expenses, and net income, over a specific period.