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-In the above figure, if we start at AD₁ and SRAS₁, and the money supply increases unexpectedly, what would be the long-run equilibrium?
Long-term Capital
Funds or assets held by a company for more than one year, used for financing long-term projects or investments.
Operating Working Capital
The difference between a company's current assets and current liabilities, excluding short-term debt. It reflects the funds that a business requires for day-to-day operations.
Effective Annual Cost
The total cost of borrowing on an annual basis, including interest and any fees, expressed as a percentage of the loan amount.
Trade Credit Terms
Trade credit terms are the conditions agreed upon between a buyer and seller regarding the payment for goods or services, including the repayment period and any discounts for early payment.
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