Which of the Following Statements Is (Are) True? I

question 139

Multiple Choice

Which of the following statements is (are) true? I. If cyclical unemployment is 0%, then the unemployment rate equals the natural rate of unemployment.
II) The unemployment rate consists of only frictional or structural unemployment.
III) An unemployment rate of zero percent is generally considered the equivalent of full employment.

• A) I only
• B) II only
• C) II and III only
• D) I, II, and III

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Definitions:

Merchandise Inventory

Goods that a retailer, wholesaler, or distributor holds for the purpose of selling to customers in the normal course of business.

Perpetual Inventory System

A method of accounting for inventory that records real-time transactions of goods as they come in and out of stock, thus maintaining a continuously updated inventory balance.

Periodic System

A method of inventory valuation for financial statements where purchases during the period are recorded directly to an inventory account and the cost of goods sold is determined at the end of the accounting period.