Assume the Natural Rate of Unemployment Is 6

question 80

Essay

Assume the natural rate of unemployment is 6%. Draw the short-run and long-run Phillips curves and show the position of the economy if expected inflation is 3% and the actual inflation rate is 4%.

Apply the retail inventory method and understand its implications on inventory valuation.

Estimate inventory costs in situations of inventory destruction using the gross profit method.

Analyze the effects of net markups and markdowns on the cost-to-retail ratio and inventory valuation.

Assess the relevance and accuracy of inventory valuation methods for financial reporting.