Full- Employment Equilibrium Occurs When

question 56

Multiple Choice

Full- employment equilibrium occurs when

• A)all who are willing and able to work are working, and the wage level is set so that the GDP deflator equals 110.
• B)real GDP equals potential GDP.
• C)aggregate demand equals short- run aggregate supply.
• D)real GDP equals potential GDP and the wage level is set so that the GDP deflator equals 110.
• E)all who are willing and able to work, are working.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, which is used for assessing its liquidity, operational efficiency, and financial health.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of the business.

Accounts Receivable

Accounts receivable from customers for deliveries of goods or provision of services by a company, payment for which is not yet made.

Inventory

The total amount of goods and materials held in stock by a company, intended for sale or production.