Most Economists See the Business Cycle

question 56

Multiple Choice

Most economists see the business cycle

• A) as a regular pattern of recessions and expansions of the same length and intensity.
• B) occurring as a result of anticipated macroeconomic changes in the marketplace.
• C) as randomly occurring, resulting from unpredictable long-run changes in the macroeconomy.
• D) as resulting from the response of households and firms to macroeconomic shocks.

---

Definitions:

Financial Reporting

Refers to the process of producing statements that disclose an organization's financial status to management, investors, and the government.

Merchandise Inventory

Goods that a company buys to resell at a profit. It is a current asset on the balance sheet.

Transportation-In

Costs associated with bringing inventory items to a company's location, which are added to the cost of inventory.

Invoice Price

The invoice price is the original price that a manufacturer suggests for the sale of a product or service before any discounts or allowances are applied.