After an Oil Price Shock,which of the Following Would Move

question 49

Multiple Choice

After an oil price shock,which of the following would move unemployment back towards its natural rate?

• A)the Fed sells bonds
• B)the government raises taxes
• C)the government increases expenditures
• D)All of the above are correct.

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Definitions:

Post-closing Trial Balance

A list of all company accounts that remain after adjusting and closing entries are made, used to ensure debits equal credits.

Trial Balance

A summary listing of the titles and balances of accounts in the ledger.

Drawing Account

An account used to record amounts withdrawn by the owner of a business for personal use.

Closing Entry

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent ones, preparing for the next period.