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If Real GDP Is Greater Than Potential GDP,then to Restore

question 260

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If real GDP is greater than potential GDP,then to restore equilibrium,________ and the price level ________.


Definitions:

Vertical Analysis

A method in financial accounting where each entry in a financial statement is listed as a percentage of a base figure, facilitating the comparison of financial statements over different periods.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue by comparing net credit sales to the average accounts receivable.

Days' Sales

A measure of how efficiently a company converts its inventory into sales, typically calculated as days' sales in inventory or days sales outstanding.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, detailing the repayment period, discount for early payment, and penalty for late payment.

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