Inflation Occurs When

question 136

Multiple Choice

Inflation occurs when:

• A) Aggregate demand increases faster than unemployment.
• B) Unemployment increases faster than the labor force.
• C) Aggregate demand increases faster than output.
• D) Output increases faster than unemployment.

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Definitions:

Return On Assets

A measure of how effectively a company uses its assets to generate profit, calculated as net income divided by average total assets.

Total Assets

The sum of all current and non-current assets owned by a company, indicating the total resources available for use in operations.

Market To Book Ratio

A ratio used to compare a company's market value (market capitalization) to its book value, providing insight into how the market values the company's equity.

Book Value Per Share

The financial measure that indicates the per-share value of a company's equity available to shareholders, calculated by dividing net assets by the total number of outstanding shares.