Which of the Following Statements Is TRUE

question 137

Multiple Choice

Which of the following statements is TRUE?

• A)The long-run potential of the economy declines as output per worker falls during a recession.
• B)The long-run potential of the economy increases as output per worker rises during an expansion.
• C)The long-run potential of the economy increases as output per worker rises during an expansion,but the long-run potential of the economy doesn't change as output per worker falls during a recession.
• D)Changes in output per worker over the business cycle have nothing to do with the long-run potential of the economy.

---

Definitions:

Quasi-Endowment

Funds that are not permanently restricted under the terms of the gift but are designated by the governing board to function as an endowment, thus not easily expendable for general operations.

Liquid Assets

Assets that can be quickly and easily converted into cash without significantly affecting their value.

Financial Ratios

Quantitative measures derived from a business's financial statements, used to evaluate its performance, liquidity, and financial health.

Managerial Accounting

A branch of accounting focused on providing financial data and analysis to managers within organizations to inform decision-making.