During the Early 1990s, Companies Started Downsizing

question 51

Multiple Choice

During the early 1990s, companies started downsizing. One of the results of this downsizing was the permanent reduction in the number of middle management positions. This change in the way businesses operate would have:

• A) not affected the natural rate of unemployment.
• B) increased the natural rate of unemployment.
• C) decreased the natural rate of unemployment.
• D) either increased or decreased the natural rate of unemployment.

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Definitions:

Credit Balance

A Credit Balance occurs when the total credits in an account exceed the total debits, often indicating the amount owed to the customer or client in financial contexts.

Debit Balance

A condition where the sum of debits in an account exceeds the sum of credits, implying assets or expenses.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collected, which is used to adjust the gross accounts receivable to its net realizable value.

Estimate

An approximate calculation or judgment of the value, number, quantity, or extent of something, often used in planning and decision-making.