The figure below shows the short-run aggregate demand and supply curves of an economy.In this figure,the distance between Y1 and Y2 represents:
Figure 10.2
Definitions:
Profit Margin
The percentage of revenue that remains as profit after all expenses have been subtracted from sales.
Investment Turnover
Investment turnover measures the rate at which a company or fund buys and sells its portfolio of investments, helping to understand its trading activity level and potential profitability.
Investment Center Performance
A measure of the efficiency and profitability of an investment center, which is a business unit responsible for its own revenues, expenses, and assets.
Operating Income
The profit earned from a firm's core business operations, excluding deductions from interest and taxes.
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