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What are the effects of leverage on shareholder wealth and the cost of capital?
Long-run Trend
The long-run trend refers to the general pattern or direction that an economic variable, such as GDP growth or the unemployment rate, follows over a prolonged period, smoothing out short-term fluctuations.
Real Wages
The purchasing power of wages, taking into account the effects of inflation or deflation, which reflects the actual goods and services that wages can buy.
Nominal Wages
The amount of money paid to an employee before adjustments for inflation; the face value of wages.
Real Wage
The purchasing power of wages, taking into account the effect of inflation on purchasing power.
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