In a Recession

question 1

Multiple Choice

In a recession:

• A) The budget position will not change.
• B) The budget position will automatically improve.
• C) The budget position will automatically worsen.
• D) Government spending will automatically equal revenue.

---

Definitions:

Gain On Equipment

Profit realized from the sale of equipment that is more than its book value.

Robotic Appliances

Machines designed for household chores that are capable of operating autonomously or semi-autonomously.

Finished Goods Inventories

Products that have completed the manufacturing process but have not yet been sold or distributed to customers.

Work In Progress

Inventory that includes goods in the process of being manufactured but not yet completed.