Which of the Following Rises During Recessions

question 20

Multiple Choice

Which of the following rises during recessions?

• A)layoffs and consumer spending
• B)layoffs but not consumer spending
• C)consumer spending but not layoffs
• D)neither layoffs nor consumer spending

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Definitions:

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, responsibilities, and liabilities.

Going-concern Assumption

An accounting principle that assumes a business will continue to operate indefinitely, rather than being liquidated.

Financial Statements

Standardized documents that provide an overview of a company's financial performance and position, including the balance sheet, income statement, and cash flow statement.