Which of the Following Statements Is True

question 84

Multiple Choice

Which of the following statements is true?

• A)There is no relationship between real GDP and the unemployment rate over a business cycle.
• B)During a business cycle, the unemployment rate declines at the same time real GDP declines.
• C)During a business cycle, the unemployment rate increases at the same time real GDP declines.
• D)During a business cycle, the unemployment rate increases at the same time real GDP increases.
• E)During a business cycle, the unemployment rate increases only if real GDP is below potential GDP.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Normal Balance

The side of an account (debit or credit) that is positive or increasing; assets and expenses typically have a debit normal balance, whereas liabilities, equity, and revenues usually have a credit normal balance.

General Ledger

A comprehensive set of accounts that records all the financial transactions of a business, showing the complete financial status and results of operations.