The Long-Run Phillips Curve Is

question 159

Multiple Choice

The long-run Phillips curve is

• A) vertical at potential GDP.
• B) the horizontal sum of the short-run Phillips curves.
• C) vertical at the natural unemployment rate.
• D) the vertical sum of the short-run Phillips curves.

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Definitions:

Allowance for Doubtful Accounts

This is a contra account that reduces accounts receivable to reflect the estimated amount of debts that may not be collected.

Accounts Receivable

Financial obligations of customers to a firm for delivered or utilized goods or services that remain unpaid.

Direct Write-off Method

An accounting method where uncollectible accounts receivable are directly written off against income at the time they are deemed uncollectible.

Uncollectible Receivables

Amounts owed to a company that it does not expect to collect and thus considers a loss.