When an Economy Is Experiencing a Negative Output Gap,there Is

question 24

Multiple Choice

When an economy is experiencing a negative output gap,there is:

• A)little inflationary pressure due to low demand.
• B)little inflationary pressure due to high demand.
• C)significant inflationary pressure due to low demand.
• D)significant inflationary pressure due to high demand.

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Definitions:

Revenue Recognition Principle

An accounting principle that dictates that revenue should be recognized in the accounting period in which it is earned and realizable.

Recognized

Recognized, in accounting terms, refers to the official acknowledgment of a transaction or event in the financial statements through recording it.

Customers

Individuals or entities that purchase goods or services from a business, contributing to the company's revenue.

Revenue Recognition Principle

An accounting standard requiring revenue to be recognized in the accounting period when it is earned and measurable.