The Fact That Severe Fluctuations in Inflation and Unemployment Are

question 200

Multiple Choice

The fact that severe fluctuations in inflation and unemployment are socially undesirable helps make the case for

• A)a "hands off" policy by the government.
• B)fixed prices and wages.
• C)active government stabilization policy.
• D)restrictions on imports from low wage countries.

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Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as (current assets - inventories) / current liabilities.

Inventory

The goods and materials a business holds for the ultimate goal of resale or processing.

Current Ratio

A measure of how well a company can satisfy its short-term due debts, revealing its liquidity over the year.

Statement Of Financial Position

Another term for the balance sheet, a financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.