The Economic Fluctuations Model Is Used

question 80

Multiple Choice

The economic fluctuations model is used

• A)for all of these.
• B)by the Fed to make decisions about monetary policy.
• C)to explain how fluctuations in aggregate supply cause departures of real GDP from potential GDP.
• D)primarily by stock market analysts.
• E)to explain how real GDP grows over a long period of time.

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Definitions:

Declaration Dividend

The act of a company's board of directors formally announcing the payment of a dividend to shareholders.

Financial Statements

Reports that summarize the financial activities and condition of a business, including balance sheet, income statement, and cash flow statement.

Stockholders' Equity

The portion of a company's assets that belongs to the shareholders, represented by the company's common stock, preferred stock, and retained earnings.

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the employer.