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If the Economy Is at an Above Full-Employment Equilibrium, ________

question 192

Multiple Choice

If the economy is at an above full-employment equilibrium, ________ gap exists and discretionary fiscal policy that ________ will return real GDP to potential GDP.


Definitions:

Accounts Payable Period

The average number of days it takes a company to pay off its suppliers and creditors.

Operating Cycle

The time period between the acquisition of inventory by a company and the receipt of cash from the sale of that inventory.

Payables Turnover

A financial efficiency ratio that measures how quickly a company pays off its suppliers by comparing net purchases to average accounts payable.

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