The Supply of Real GDP Is a Function of

question 332

Multiple Choice

The supply of real GDP is a function of

• A) the quantities of labor, capital and the state of technology.
• B) the sum of wages, salaries, corporate profits, rents and interest.
• C) the total expenditures of consumers, investors and government.
• D) only the state of technology.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how effectively a company collects on its credit sales.

Credit Policy

The guidelines a company follows to determine the amount and terms of credit to extend to customers.

Net Sales

The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects its receivables or the speed of debt collection from customers.