A Disaster That Destroys a Large Part of Current Agricultural

question 171

True/False

A disaster that destroys a large part of current agricultural output will not change LRAS, while a disaster that destroys the capital stock in a major city will reduce LRAS.

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Definitions:

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using equity to generate profits.

Total Stockholders' Equity

The total worth of a company to its shareholders, calculated as total assets minus total liabilities.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and profits.

Total Stockholders' Equity

The total value of a company owned by its shareholders, calculated as the sum of share capital and retained earnings minus treasury shares.