Home Restoration Reports Net Sales of $70,000

question 89

Multiple Choice

Home Restoration reports net sales of $70,000. If sales returns and allowances are $13,000 and sales discounts are $2,500, what are gross sales?

• A) $70,000
• B) $85,500
• C) $80,500
• D) $54,500

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Definitions:

Natural Rate

The natural rate often refers to the unemployment rate when the economy is at full capacity, balancing the number of job seekers with job vacancies without accelerating inflation.

Recessionary Gap

A situation in macroeconomics where actual output is less than the potential output of an economy, often marked by high unemployment.

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period, assuming that the prices of inputs remain constant.

Sticky Prices

Refers to the resistance of prices to change, despite shifts in the broader economy or a product's supply and demand.