The Peak of the Business Cycle

question 84

Multiple Choice

The peak of the business cycle

• A)usually occurs when the actual rate of unemployment equals the natural rate.
• B)is a temporary minimum level of real GDP.
• C)is a temporary maximum level of real GDP.
• D)usually occurs immediately after the recession phase.

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Definitions:

Accounts Receivable

Receivables from clients to a corporation for merchandise or services that have been supplied but remain unpaid.

Merchandise Inventory

Merchandise inventory represents the goods a company has in stock that are ready to be sold in the normal course of business.

Accounts Payable

Accounts payable are liabilities representing the amounts that a company owes to creditors for purchases or services rendered that have not yet been paid.

Supplies Expense

The cost associated with using up supplies during an accounting period, which is recorded as an expense.