Refer to the Given Figure

question 19

Multiple Choice

Refer to the given figure. ________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________.

• A)Rising; A; C
• B)Rising; B; C
• C)Falling; A; C
• D)Falling; A; B

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Definitions:

Covenants

Agreements or promises in a formal loan or bond agreement that cover certain conditions, actions, or restrictions taken by the borrower.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Dividend

A portion of a company's earnings, decided by the board of directors, to be distributed among shareholders, typically in the form of cash payments or additional shares.

Net Profits

The amount of money left over after all expenses, taxes, and deductions are subtracted from a company's total revenue.