Suppose the economy is initially at potential GDP.
Definitions:
Depreciation Expense
The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.
Top-Down Approach
An analysis method that begins with global or macroeconomic factors before drilling down into the specifics of individual securities or sectors.
Total Cash Flow
The total amount of money being transferred into and out of a business, reflecting the organization's operating, investing, and financing activities.
Net Working Capital (NWC)
The difference between a company's current assets and current liabilities, indicating its short-term financial health.
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