NEET BIOLOGY

Detailed explanation-1: -Short CEO tenure and neglect of investment outlays decrease a company’s long-term value and profitability, as well as the ability to adapt to new market conditions and compete on a global scale. In this way, if short-termism affects many firms, it translates into the reduced potential of the entire economy.

Detailed explanation-2: -Overall, the presence of short-termist pressure causes growth to drop by almost 0.1% per year, leading to around 6% lower output over a century. In the baseline model, households suffer a loss in welfare of around 0.5% or $50 billion of lost con-sumption each year.

Detailed explanation-3: -In a financial crisis, asset prices see a steep decline in value, businesses and consumers are unable to pay their debts, and financial institutions experience liquidity shortages.

Detailed explanation-4: -The immediate effects of the Great Depression include the major decline of personal and household income in the US, escalating poverty and leaving families with little to nothing. This led to subsequent losses in government tax revenue as well.