All of the Following Statements Are True EXCEPT

question 5

Multiple Choice

All of the following statements are true EXCEPT:

• A)when changes in real GDP are positive,the economy is said to be expanding.
• B)peaks in the business cycle tend to occur when the capacity-to-output is smallest.
• C)troughs occur when the capacity-to-output gap is the largest.
• D)two consecutive quarterly declines in GDP are generally said to be a recession.

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Definitions:

Product

Any item or service offered to the market for consumption, use, or acquisition.

Merchandise Inventory

Goods that a company holds for the purpose of selling to customers in the ordinary course of business.

Monthly Depreciation

The portion of a fixed asset's cost allocated as an expense over a single month, reflecting the asset's decrease in value over time.

Accounts Payable

Accounts Payable is the amount of money owed by a business to its suppliers or creditors for goods and services purchased on credit.