Contractionary Fiscal Policy _______________ Real GDP ______________ in an Open

question 116

Multiple Choice

Contractionary fiscal policy _______________ Real GDP ______________ in an open economy than in a closed economy.

• A)raises;more
• B)raises;less
• C)lowers;more
• D)lowers;less

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Definitions:

Change In Accounting Principle

An adjustment made to the accounting methods used by a company, often requiring retrospective application to prior period financial statements.

Net Income

The remaining earnings of a firm once subtracting every expense and tax from its total income.

Extraordinary Item

Events or transactions that are distinct from the ordinary activities of a company, which are unusual in nature and infrequent in occurrence.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a specific period of time.