Which of the Following Would Increase the Cyclically Adjusted Deficit

question 7

Multiple Choice

Which of the following would increase the cyclically adjusted deficit?

• A) A decrease in income.
• B) An increase in the primary surplus.
• C) An increase in income.
• D) A decrease in the primary deficit.
• E) An increase in the primary deficit.

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Definitions:

Accounts Payable

Liabilities of a business that are debts owed to creditors for purchases made on credit.

Periodic Inventory System

An inventory system in which the inventory count and cost of goods sold are determined at set intervals, such as monthly or annually.

Purchase Returns and Allowances

Transactions where buyers return defective or unsatisfactory products to the seller, who may offer a refund or price reduction.

Freight-In

The cost associated with transporting goods to a warehouse or production facility, considered part of the inventory cost.