In the Long Run

question 182

Multiple Choice

In the long run

• A) both supply and demand shocks have permanent effects on real GDP.
• B) real GDP can remain below potential.
• C) real GDP can remain above potential.
• D) both supply and demand shocks have no effect on real GDP.
• E) supply shocks have permanent effects on real GDP but demand shocks have no effect.

Comprehend the implications of different cash inflow scenarios on the payback period and investment valuation.

Understand the key characteristics of different economic systems.

Identify measures used to assess the economic performance of countries.

Comprehend the concept of capital in economic contexts.

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Definitions:

Subscription Receivable-common Stock

Subscription receivable-common stock refers to the amount due from subscribers who have agreed to purchase common stock but have not yet paid.

Stock Subscription Plan

A mechanism for employees or investors to buy shares of a company's stock, often at a discount.

Paid in Capital

The portion of the shareholders' equity that represents the amount investors have put into the company by purchasing shares directly from the company.

Common Stock

Represents ownership shares in a corporation, providing voting rights and a residual claim on corporate earnings in the form of dividends.