Economic Growth

question 33

Multiple Choice

Economic growth

• A)Refers to an increase in output.
• B)Causes the production possibilities curve to shift inward.
• C)Means that capacity has decreased in the short run.
• D)Cannot be sustained over time.

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations to finance their immediate cash flow needs.

Spontaneous Financing

Refers to funding that occurs naturally as a firm's operations grow, such as trade credit that increases with sales.

Accrual Liabilities

Obligations that a company has incurred, for which invoices have not yet been received or payment has not been made.

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.