Over a Long Period of Time, Perhaps Many Years, Changes

question 5

Multiple Choice

Over a long period of time, perhaps many years, changes in real GDP come primarily from

• A)continuous increases in potential GDP.
• B)leftward shifts of the AD curve.
• C)upward shifts of the AS curve.
• D)upward shifts of the AE curve.
• E)rightward shifts of the AD curve.

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Definitions:

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term to lease a similar asset in a similar economic environment.

Liability

Financial obligations or debts owed by a company to external parties or individuals.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Deferred Tax Liability

Created when differences in financial reporting and tax reporting cause accounting income to be higher than tax income in a given period.