Use the Table Below to Answer the Following Questions

question 44

Multiple Choice

Use the table below to answer the following questions.
Table 26.3.3

-Refer to Table 26.3.3. When the economy is at its short-run macroeconomic equilibrium, the economy

• A)is also in a long-run macroeconomic equilibrium.
• B)has an inflationary gap.
• C)has a recessionary gap.
• D)has neither an inflationary nor a recessionary gap.
• E)Both A and D are correct.

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Definitions:

Merchandise Inventory

The total value of a company's goods that are ready for sale at any given time, including both finished goods and goods in various stages of production.

Consigned Goods

Items that are sent by their manufacturer to a third party, but still remain the property of the manufacturer until sold.

Goods in Transit

Items that have been shipped by a seller but have not yet been received by the buyer.

Days' Sales in Inventory

A measure of how quickly inventory is sold and replaced over a period, calculated by dividing the ending inventory by the cost of goods sold and multiplying by 365.