The Debt to Assets Ratio Is Computed by Dividing

question 63

Multiple Choice

The debt to assets ratio is computed by dividing

• A) long-term liabilities by total assets.
• B) total liabilities by total assets.
• C) total assets by total liabilities.
• D) total assets by long-term liabilities.

---

Definitions:

Price Level

refers to the average of current prices across the entire spectrum of goods and services produced in the economy.

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a short time period, given the current price levels.

Aggregate Output

The total quantity of goods and services produced in an economy over a given period, often considered synonymous with real GDP.

Price Level

The standard price level of the wide variety of goods and services in the economy.