If the Economy Is at Point a in the Phillips

question 35

Multiple Choice

If the economy is at point A in the Phillips curve graph shown, what prediction would you make for unemployment in the long run?

• A)It will increase.
• B)It will decrease.
• C)It will remain constant.
• D)It will explode.

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Definitions:

Adjustment

An entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Percent of Sales Method

A financial forecasting tool used to estimate certain balance sheet and income statement accounts based on a projected sales figure.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and are written off as a bad debt expense.

Credit Sales

Sales where the customer is allowed to pay for the product or service at a later date, extending credit.