Changes in Government Spending Are Not Likely Causes of Business

question 28

Multiple Choice

Changes in government spending are not likely causes of business cycles because changes in government spending predict

• A) countercyclical real wages.
• B) procyclical real wages.
• C) countercyclical employment.
• D) procyclical employment.

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Definitions:

FIFO

"First In, First Out," an inventory valuation method where goods first bought are the first ones sold, affecting the cost of goods sold and inventory on financial statements.

Ending Inventory

The total value of a company's merchandise, raw materials, and finished and unfinished products which have not yet been sold at the end of an accounting period.

Perpetual Inventory System

An accounting method that records inventory purchases and sales in real time, providing a continuous account of inventory levels.