The Increase in the Amount That the Government Collects in Taxes

question 156

Multiple Choice

The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that the government collects in taxes when the economy goes into a recession is an example of

• A)automatic stabilizers.
• B)discretionary fiscal policy.
• C)discretionary monetary policy.
• D)automatic monetary policy.

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Definitions:

Income from Operations

The profit generated from a company's regular business operations, excluding any extraordinary items.

Estimated Returns Inventory

Inventory that is reserved or set aside by a company, based on historical data, to account for future product returns from customers.

Physical Inventory

The process of counting the actual items in stock to verify records and ensure accuracy in inventory levels.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate revenue.