Pro Forma Cash Flow Is

question 27

Multiple Choice

Pro forma cash flow is

• A)cash flow based on the actual.
• B)calculated from subtracting assets from liabilities.
• C)cash flow calculated on past receipts and expenses.
• D)projected cash inflow and outflow.

---

Definitions:

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, reflecting inflation or deflation.

Short-Run Aggregate Supply

A curve that shows the relationship in the short term between the price level and the quantity of output provided by firms when some input prices, especially wages, are fixed.

Sticky-Wage Theory

A hypothesis that wages are slow to adjust to the economic conditions, leading to potential unemployment or labor market imbalances.

Natural Rate

An economic theory concept referring to the level of any economic variable that is expected to prevail in the long term under natural conditions, without external influences.