A Recession Is a Period in Which

question 163

Multiple Choice

A recession is a period in which:

• A)cost-push inflation is present.
• B)nominal domestic output falls.
• C)demand-pull inflation is present.
• D)real domestic output falls.

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Definitions:

Inventory Valuation

The process of estimating the value of a company's inventory at cost or market value, whichever is lower.

LIFO

Last In, First Out, an inventory accounting method where the most recently produced items are recorded as sold first.

FIFO

"First In, First Out," an inventory valuation method where goods purchased or produced first are sold or used first.

Exchange Gain

A profit resulting from foreign currency transactions, due to favorable changes in exchange rates.