Which of the Following Components Is Not Included in the Equation

question 58

Multiple Choice

Which of the following components is not included in the equation for the short-run aggregate supply curve?

• A) Nominal interest rate
• B) Inflation
• C) Expected inflation
• D) Output gap

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Definitions:

Foreign Exchange Gain

Profit realized from the conversion of foreign currency into the domestic currency at a higher exchange rate than when it was acquired.

Accounts Payable

A liability to a creditor, carried on an open account, usually for purchases of goods and services.

Net Income

The income that remains in a business after all costs and expenses have been subtracted from total revenue, indicative of the financial performance.

Cash Flow Hedge

A financial instrument intended to offset potential losses or gains that could be incurred by future cash flows, acting as a buffer against currency, interest rate, or commodity price changes.