The Automatic Budget Surpluses and Budget Deficits That Occur in the Federal

question 143

Multiple Choice

The automatic budget surpluses and budget deficits that occur in the federal budget over the business cycle

• A)destabilize the economy.
• B)stabilize the economy.
• C)decrease potential GDP.
• D)increase potential GDP.

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Definitions:

Inventory

Inventory consists of goods and materials held by a business for the purpose of resale or as part of the production process.

Contribution Margin

The selling price per unit minus the variable cost per unit, used to cover fixed costs and contribute to net profit.

Selling Price

The price for which a product or service is sold to the customer.

CVP Income Statement

An income statement format used in cost-volume-profit analysis to determine how changes in costs and volume affect a company's profit.