All of the Following Are Likely Results of a Negative

question 81

Multiple Choice

All of the following are likely results of a negative demand shock EXCEPT

• A) a negative output gap.
• B) lower inflation.
• C) the IS curve shifts to the left.
• D) the Phillips curve shifts to the left.

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Definitions:

Percentage of Sales Approach

A method used in financial forecasting to estimate various elements of a financial statement as a percentage of forecasted sales.

Profit Margin

A financial metric that measures the amount of net income generated as a percentage of revenue, indicating how effectively a company can convert sales into net profits.

Dividend Payout Ratio

The percentage of earnings paid to shareholders in dividends, indicating how much money a company returns to shareholders versus reinvesting in the business.

Financial Planning Models

Tools or software used for projecting future financial results and for strategic financial planning, often in the form of spreadsheets or specialized software.