How Rapidly Does the Economy's Self-Correcting Mechanism Work? Most Economists

question 130

Multiple Choice

How rapidly does the economy's self-correcting mechanism work? Most economists agree that it

• A)works quickly and reliably.
• B)works slowly and not very reliably.
• C)works reliably, but not very quickly.
• D)does not work at all.

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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 to date.

Original Cost

The initial price paid to acquire an asset before any depreciation or amortization.

Net Income

The earnings a company retains following the deduction of all costs and taxes from its overall income.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, subtracted from its original cost on the balance sheet.