All of the Following Are Characteristics of Short-Term Economic Fluctuations

question 40

Multiple Choice

All of the following are characteristics of short-term economic fluctuations EXCEPT:

• A) expansions and recessions are felt in only a few sectors of the economy.
• B) expansions and recessions are irregular in length and severity.
• C) unemployment rises during recessions.
• D) durable-goods industries are more sensitive to short-term fluctuations than service and non-durable industries.

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Definitions:

Debit Memo

A document issued by a buyer to a seller indicating an adjustment or decrease in the amount that the buyer owes to the seller, usually due to returns or refunds.

Bank Service Charges

Fees charged by a bank for the maintenance of an account and for providing various banking services.

NSF Checks

Non-sufficient funds checks are ones that cannot be processed because the drawer's account does not have enough money to cover the amount.

Journal Entry

A record in accounting that represents a transaction and its effects on accounts, following the double-entry system.