A Fiscal Policy to Counter a Recessionary Gap Is

question 186

Multiple Choice

A fiscal policy to counter a recessionary gap is

• A) increasing interest payments on the national debt.
• B) increasing taxes.
• C) decreasing transfer payments.
• D) increasing transfer payments.
• E) decreasing government spending on products.

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Definitions:

Direct Labor

The wages and other forms of remuneration paid to employees who directly work on the products being manufactured, such as assembly line workers.

Property, Plant, and Equipment

Long-term tangible assets used in the operation of a business, such as buildings, machinery, and equipment.

Raw Material

Basic materials used in the production process, which are transformed into finished goods through the manufacturing process.

Fixed Overhead

Expenses that do not vary with production volume, including rent, salaries, and insurance.