Suppose That Output in an Economy Is 50 Units and the Number

question 91

Multiple Choice

Suppose that output in an economy is 50 units and the number of hours worked in the economy is 25. If the economy enters an expansion, which of the following combinations of output and hours worked would best reflect the expansion?

• A) 50 units of output and 25 hours worked
• B) 60 units of output and 40 hours worked
• C) 80 units of output and 40 hours worked
• D) 70 units of output and 30 hours worked

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Definitions:

Adjusting Journal Entry

An entry in accounting that is made at the end of an accounting period to record any unrecognized income or expense for the period.

Income Tax Expense

The cost incurred by businesses or individuals due to earnings, represented as an expense in financial statements and affecting net income.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment.