Deflation

question 37

Multiple Choice

Deflation:

• A)Is always a problem
• B)Is not a problem unless it moves output below potential output
• C)Is not a problem unless it moves output so low that policymakers can't bring it back up
• D)Is beneficial to an economy during times of economic expansion

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Definitions:

Credit

A bookkeeping entry that increases the balance of liabilities and revenue accounts, or decreases the balance of an asset or expense account.

Accounts Receivable

Liabilities customers hold towards a business for the delivery of goods or services that have not been paid off.

Financial Statement

Documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Statement of Retained Earnings

This report outlines the fluctuation in a company’s retained earnings over a particular accounting timeframe, incorporating elements like net profits and dividend distributions.