Investment Tends to Be More Variable Over the Business Cycle

question 14

Multiple Choice

Investment tends to be more variable over the business cycle than

• A)aggregate output.
• B)real interest rates.
• C)government spending.
• D)consumer income.
• E)savings.

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Definitions:

Long-Term Liability

Financial obligations of a business that are due more than one year in the future.

Adjusting Entries

Accounting record entries created at the conclusion of an accounting cycle to assign revenues and expenses to the time they truly took place.

Reversing Entries

At the start of a new accounting period, entries are recorded to negate or undo the adjustments that were made at the conclusion of the prior period.

Salaries Expense

The total amount paid to employees for services rendered during a specific period, recorded as an expense on the income statement.