Which of the Following Is True of Economic Expansion

question 30

Multiple Choice

Which of the following is true of economic expansion?

• A)There is a decline in production,employment,and income.
• B)The standard of living rises because more people are employed and have money to spend.
• C)There is a decline in spending.
• D)Consumer spending is low and business output is sharply reduced.
• E)The prices stagnate during this period.

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Definitions:

Unemployment Taxes

Taxes paid by employers to fund unemployment insurance programs, varying by state and based on the amount of wages paid to employees.

Federal Income Taxes

Taxes levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Withholding Allowances

Amounts exempted from an employee's income tax withholding, directly related to the number of dependents and personal situations.

Current Earnings

The net income that a company has generated over a specific period, excluding any non-operational or extraordinary items.