When the Natural Unemployment Rate Increases

question 48

Multiple Choice

When the natural unemployment rate increases,

• A) there are no shifts of either the long-run Phillips curve or the short-run Phillips curve.
• B) both the long-run Phillips curve and the short-run Phillips curve shift leftward.
• C) the long-run Phillips curve shifts rightward, and the short-run Phillips curve shifts leftward.
• D) both the long-run Phillips curve and the short-run Phillips curve shift rightward.

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Definitions:

Increase in Accounts Receivable

A situation where the amount owed by customers for goods or services increases during a specific period, often indicating sales growth, but also potentially impacting cash flow.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the basic profitability of a company's core activities.

Aging of Accounts Receivable

A report or method that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding.

Bad Debt Expense

An expense recorded to account for receivables that are expected not to be collected.