What Is the Principal Reason That Economists Give for the Existence

question 202

Multiple Choice

What is the principal reason that economists give for the existence of deflationary and inflationary gaps?

• A)Wages are flexible in the short run.
• B)Wages are flexible in the long run.
• C)Wages are fixed in the long run.
• D)Wages are fixed in the short run.

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Definitions:

Quick Ratio

A liquidity measure that indicates a company's ability to pay its short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

Current Ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Contingent Liabilities

Potential liabilities that may or may not become actual liabilities, depending on the outcome of uncertain future events.

Environmental Awards

Recognitions given to individuals, organizations, or businesses for significant contributions to the preservation and sustainability of the environment.