To Identify the Onset of a Recession, the National Bureau

question 38

Multiple Choice

To identify the onset of a recession, the National Bureau of Economic Research (NBER) Business Cycle Dating Committee,

• A)tracks real GDP and nominal GDP for two consecutive quarters only.
• B)uses a range of indicators including real GDP, employment and income.
• C)identifies economic activity solely with real GDP.
• D)uses procedure that determines the dates of peaks and troughs mainly on the basis of employment.

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Definitions:

Overhead Volume Variance

The difference between the expected (budgeted) and actual overhead costs attributed to a change in production volume.

Normal Capacity

The average level of operational output that can be sustained over a period under normal conditions, taking into account regular downtime and maintenance.

Standard Costs

Standard costs are predetermined or estimated prices used to measure the efficiency of operations and the performance of a company against set benchmarks.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and statement of cash flows.