Suppose the Economy Is in Long-Run Equilibrium

question 98

Multiple Choice

Suppose the economy is in long-run equilibrium.Concerns about pollution cause the government to significantly restrict the production of electricity.At the same time,the value of the dollar falls.In the short-run we would expect

• A)real GDP will rise and the price level might rise, fall, or stay the same.
• B)real GDP will fall and the price level might rise, fall, or stay the same.
• C)the price level will rise, and real GDP might rise, fall, or stay the same.
• D)the price level will fall, and real GDP might rise, fall, or stay the same.

Comprehend the classification and reporting requirements for trade and nontrade receivables.

Grasp the importance and methods of cash planning and management in a business environment.

Understand the criteria for classifying an investment as a cash equivalent.

Identify the components and importance of internal control over cash receipts and payments.

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Definitions:

Compete

To strive against others for the purpose of achieving a goal, such as winning a market share or achieving a business objective.

Strategic

Pertaining to the identification, planning, and execution of actions designed to achieve long-term goals and objectives.

Purchasing

The process of obtaining goods or services, typically for business purposes, from an external source.

Make-Or-Buy Decision

The choice between producing a component or a service and purchasing it from an outside source.