Which of the Following Is a Theory That Economists Use

question 36

Multiple Choice

Which of the following is a theory that economists use to describe the business cycle?

• A) circular flow model
• B) Keynesian cycle model
• C) impulse model
• D) contractionary/expansionary model

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Definitions:

Property Plant Equipment

Long-term tangible assets held for business use and not expected to be converted into cash in the current or upcoming fiscal year, including land, buildings, machinery, and vehicles.

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures needed to maintain or expand the asset base.

Common Stock

A type of security that represents ownership in a corporation, entitling the shareholder to a proportion of the corporation's assets and profits.

Depreciation

The systematic allocation of the cost of an asset over its useful life.