The "Business Cycle" Refers To

question 130

Multiple Choice

The "business cycle" refers to:

• A) short-run fluctuations in macroeconomic activity.
• B) the long-run increase in GDP.
• C) changes in the economy over the course of the four seasons.
• D) changes in the economy between winter and summer.

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Definitions:

Accounting Equation

The fundamental equation of double-entry bookkeeping, stating that assets = liabilities + owners' equity.

Purchases Equipment

The process of acquiring physical assets like machinery or office supplies that are used in the operations of a business.

Liabilities Increase

Refers to a rise in the obligations or debts that a company owes, which may affect its financial health.

Net Income

The end profit of a company after revenue has been reduced by expenses and taxes.