Refer to the Following Diagram

question 49

Multiple Choice

refer to the following diagram:

-If flow 2 increases,then the unemployment rate will go _____; if flow 6 decreases,then the unemployment rate will go _____.

• A)up; up
• B)up; down
• C)down; up
• D)down; down

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Definitions:

Costs To Sell

The direct costs attributable to the disposition of an asset, excluding finance costs and income taxes.

Impairment Loss

A charge to the income statement that occurs when the carrying amount of an asset exceeds its recoverable amount, indicating the asset is not expected to generate future economic benefits.

Recoverable Amount

The higher value between an asset's fair value less costs to sell and its value in use.

Carrying Amount

Carrying amount is the value at which an asset is recognized in the balance sheet after deducting accumulated depreciation and impairment losses.