The Long-Run Economic Growth Model Assumes That

question 41

Multiple Choice

The long-run economic growth model assumes that

• A) the economy always moves toward equilibrium at full employment.
• B) it takes a long time to arrive at the long run.
• C) macroeconomic equilibrium at full employment is only a theory and has little to do with reality.
• D) the economy is at full employment at all times.

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Definitions:

Voting Stock

Shares of a company that grant the shareholder the right to vote on company matters, such as electing the board of directors, at shareholder meetings.

Available-For-Sale

A classification for financial assets indicating that they can be sold in the future but are not held for active trading or intended to be held to maturity.

Net Income

This is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, often referred to as the bottom line.

Trading Securities

Trading securities are a form of investments that a company plans to buy and sell over a short period of time with the intention of profiting from the market movements.