igure 42.3 Expansionary Monetary Policy LRAS SRAS AD Y Y1 REAL GDP 3. Suppose that in the situation shown in Figure 42.3, the aggregate supply and demand curves are represented by LRAS, SRAS and AD. The monetary authorities decide to maintain the level of employment represented by the output level Y, by using expansionary monetary policy. (A) Explain the effect of the expansionary monetary policy on the price level and output in the short run. (B) Explain the effect on the price level and output in the long run. PRICE LEVEL

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Financial Statements

Financial statements (or financial reports) are the formal records of the financial activities that are undertaken by a firm. They are convenient instruments used for analyzing a company’s financial position and performance. Financial ratios are created with the help of the numerical values that are derived from the financial statements. They give meaningful information about the financial performance of the company.