A Recession in the Rest of the World Means U

question 83

Multiple Choice

A recession in the rest of the world means U.S.

• A)aggregate supply decreases.
• B)aggregate demand decreases.
• C)potential GDP decreases.
• D)exports increase.
• E)potential GDP increases.

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Definitions:

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested in the business or used to pay off debt.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, highlighting the impact of fixed costs.

Degree

A level of qualification, achievement, or temperature that denotes status, extent, or intensity. In academic contexts, it often refers to the certification received upon completing a course of study at a college or university.