Which Statement Is Correct

question 126

Multiple Choice

Which statement is correct?

• A)All sectors of the economy are affected to similar degrees by business fluctuations.
• B)Real output and employment generally show little variance over the business cycle.
• C)The production of nondurable consumer goods is more stable than the production of durable consumer goods over the business cycle.
• D)Recessions have not been severe because economists and statisticians have been able to predict their occurrence and intensity with high accuracy.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life until a specific date.

Salvage Value

An asset’s foretold selling price at the finish of its service period.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense over its useful life.

Plant Assets

Long-term tangible assets used in the operation of a business, typically including items like machinery, buildings, and equipment.