There Has Been a Decrease in Investment

question 113

Multiple Choice

There has been a decrease in investment.As a result, real GDP will ________ in the short run, and ________ in the long run.

• A)increase; increase further
• B)increase; decrease to its initial value
• C)decrease; decrease further
• D)decrease; increase to its initial level
• E)increase; grow more quickly

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Definitions:

Full Disclosure Principle

An accounting principle that requires companies to provide all necessary information in their financial statements that could affect the understanding of those statements.

Competitive Advantage

The unique advantage a company has over its competitors, allowing it to generate greater sales or margins and/or retain more customers.

Technological Innovations

New or improved technological products or processes that significantly advance the state of the art, within any field of technology.

Faithful Representation

A fundamental qualitative characteristic in accounting that ensures financial information accurately reflects an entity's transactions and events in a way that is complete, neutral, and free from error.