The Process by Which an Economic Variable Is Adjusted to Remove

question 201

Multiple Choice

The process by which an economic variable is adjusted to remove the effects of changes predicted to occur at the time of year is known as

• A) structural change
• B) real change
• C) macroeconomic adjustment
• D) unemployment adjustment
• E) seasonal adjustment.

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Definitions:

Marketable Securities

Financial instruments and assets that can be easily translated into cash because they have high liquidity and short maturities.

Accounts Receivable

Money owed to a company by its customers for products or services provided on credit.

Inventory

The total amount of goods or materials a company holds, meant for sale or production.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets.