The Figure Above Shows Some Phillips Curves for an Economy

question 57

Multiple Choice

The figure above shows some Phillips curves for an economy.
-Along the short-run Phillips curve SRPC₀ in the figure above, the natural unemployment rate is

• A) 6 per cent.
• B) 8 per cent.
• C) 3 per cent.
• D) 4 per cent.
• E) an amount that can be determined from the figure but none of the above answers is correct.

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Definitions:

Return on Assets

A profitability ratio that measures how effectively a company uses its assets to generate profit, calculated as net income divided by total assets.

Vertical Analysis

A financial analysis method that expresses each item in a financial statement as a percentage of a base amount to compare different years or companies.

Cost of Goods Sold

The immediate costs involved in making the products that a company sells, comprising both materials and labor.

Net Sales

The revenue generated from sales after deducting returns, allowances for damaged or missing goods, and discounts.