An Economic Expansion Rather Than a Recession Occurs

question 189

Multiple Choice

An economic expansion rather than a recession occurs

• A) when the federal budget is balanced.
• B) when the unemployment rate falls below 5 percent.
• C) when growth in real GDP is positive.
• D) when the unemployment rate is not changing.

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Definitions:

Special Order

A one-time or unusual order for products or services, often requiring customization or a departure from standard production processes.

Fixed Costs Per Unit

Fixed costs per unit decrease as production increases because the total fixed costs are spread over a larger number of units.

Selling Price

The amount of money charged for a product or service, or the sum for which something is sold.

Margin of Safety

The difference between actual sales and the break-even point, indicating how much sales can fall before a business incurs a loss.