The Automatic Mechanism ________ the Price Level in the Case

question 264

Multiple Choice

The automatic mechanism ________ the price level in the case of ________ and ________ the price level in the case of ________.

• A)raises; recession; lowers; expansion
• B)raises; expansion raises; recession
• C)lowers; expansion; lowers; recession
• D)lowers; recession; raises; expansion

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Definitions:

Salaries and Wages Expense

The total cost incurred by an employer for employee compensation, including both salaries and hourly wages.

Temporary Account

An account that is closed at the end of each accounting period and its balances transferred to permanent accounts; examples include revenues, expenses, and dividends accounts.

Correct Entry

An accurate recording of a transaction in the books of accounts, adhering to accounting principles and conventions.

Correcting Entry

A journal entry made in accounting records to amend a previously made error.