When There Is a Negative Output Gap,the Unemployment Rate

question 26

Multiple Choice

When there is a negative output gap,the unemployment rate

• A) rises.
• B) remains steady.
• C) is also negative.
• D) is less reliable.

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Definitions:

Adjustments

Corrections or changes made to the book balances of accounts to reflect more accurate values in financial accounting.

Payroll

The total amount of wages, salaries, and other earnings that a company pays to its employees.

Workweek

A fixed, standard period used for labor scheduling and payroll, commonly defined as a set number of hours or days that an employee works.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.