Which of the Following Is a Correct Sequence of Events

question 91

Multiple Choice

Which of the following is a correct sequence of events during an expansion?

• A) Unemployment falls, income falls, tax revenue falls, unemployment benefits rise, and the budget deficit falls.
• B) Unemployment rises, income falls, tax revenue falls, unemployment benefits rise, and the budget deficit rises.
• C) Unemployment rises, income falls, tax revenue rises, unemployment benefits fall, and the budget deficit falls.
• D) Unemployment falls, income rises, tax revenue rises, unemployment benefits fall, and the budget deficit falls.

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Definitions:

Inventory Increase

An upward adjustment in the book value of inventory, indicating a rise in the number of goods or materials on hand.

Noncash Investing

Transactions involving investment activities that do not involve immediate cash flows, such as exchanging one asset for another.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the entity, such as issuing shares or taking loans.

Investing Activities

transactions involving the purchase and sale of long-term assets and other investments, not related to core business operations.