Refer to the Figure Below

question 59

Multiple Choice

Refer to the figure below.Long-run equilibrium in this economy:

• A)will be impossible to achieve.
• B)could occur if AD shifts downward to the left.
• C)could occur if AS shifts downward and to the right.
• D)will occur only if AD shifts upward to the right.

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Definitions:

Payback Period

The duration needed to recoup the cost of an investment.

Straight-Line Depreciation

Straight-line depreciation is an accounting method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Discount Factor(s)

A numerical factor used to calculate the present value of future cash flows, reflecting how future values are worth less in today's terms.