Fiscal Policy During Periods of Relatively Low Unemployment and Low

question 76

Multiple Choice

Fiscal policy during periods of relatively low unemployment and low inflation have

• A) little effect due to time lags and the crowding-out effect.
• B) significant effect due to the timely intervention of the president and congress.
• C) significant effect because the changes in fiscal policy gives investors confidence in the economy.
• D) little effect because the global market makes up fifty percent of aggregate spending.

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Definitions:

Inventory Management

The process of ordering, storing, tracking, and controlling inventory to ensure the right quantity and quality of stock.

Efficiency and Effectiveness

Terms that relate to the extent to which objectives are achieved (effectiveness) and the relation between the output and the resources used to produce it (efficiency).

Retail Method

An accounting practice used in the retail industry to estimate inventory costs based on the retail price.

Merchandise Inventory

Goods available for sale, valued at the lower of cost or market price, on a company's balance sheet.