When Actual Output Is Greater Than Potential Output,there Is A(n)

question 64

Multiple Choice

When actual output is greater than potential output,there is a(n)

• A) budget deficit
• B) budget surplus.
• C) trade deficit.
• D) recessionary gap.
• E) expansionary gap.

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Definitions:

Notes Receivable

Financial assets representing amounts due to be paid to a company by customers or other entities in the form of promissory notes.

Direct Method

A method of preparing the cash flow statement where actual cash flow information from the company's operations is used, as opposed to indirect method adjustments.

Operating Cash Receipts

Money received by a company from its operational activities, such as sales of goods or services.

Accumulated Depreciation

The total amount of depreciation expense recorded for an asset, reducing its book value over time.