Braun and Evans Found That

question 55

Multiple Choice

Braun and Evans found that

• A)the measured Solow residual varied sharply over the seasons.
• B)electricity use by producers rises sharply in economic upturns.
• C)professional forecasters have rational expectations of inflation.
• D)shocks to fiscal policy are the main source of business cycle fluctuations.

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Definitions:

Journalizing

The process of recording transactions in a journal before they are posted to ledger accounts.

Posting Closing Entries

The process of transferring the balances of temporary accounts to permanent accounts at the end of an accounting period to prepare the books for the next period.

Financial Statements

Reports that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Real Accounts

Also known as permanent accounts, these include assets, liabilities, and equity accounts which are not closed at the end of the accounting period and their balances are carried forward.