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Modern economists are increasingly using microeconomic analysis in macroeconomics because
Equity Method
An accounting technique used by firms to assess the profits earned from their investments in other companies, where they own a significant but not controlling interest, typically recognized as 20% to 50% ownership.
Consolidation
The process of combining the financial statements of a parent company with those of its subsidiaries to present as if the group is a single entity.
Shares
Units of ownership interest in a corporation or financial asset, providing a share in the profits and losses.
Financial Position
A term describing the financial health of a company, encompassing its assets, liabilities, and shareholders' equity, similar to a balance sheet but often referenced in broader financial analysis.
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