Which of the Following Will Most Likely Occur During the Recessionary

question 38

Multiple Choice

Which of the following will most likely occur during the recessionary phase of a business cycle?

• A) Real GDP rises, and the unemployment rate falls.
• B) Real GDP declines, and the rate of inflation rises.
• C) The sales of most businesses decline, and the unemployment rate rises.
• D) Inflation rises, and employment/population ratio falls.

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Definitions:

Traditional Costing

An accounting method that applies indirect costs to products based on a predetermined rate, not necessarily reflecting the actual usage of resources.

Direct Labor-Hours

The total hours worked directly on a manufacturing process or project.

Traditional Costing

An accounting method that allocates manufacturing overhead costs to products based on the volume of production resources consumed.

Direct Labor-Hours

A measure of the work done by employees directly involved in the manufacturing process, counted in hours.