Which of the Following Are NOT Included Among Gordon's Criticisms

question 87

Multiple Choice

Which of the following are NOT included among Gordon's criticisms of Friedman's fooling model?

• A)Workers buy many goods on a weekly basis and thus could discover quite quickly that prices had risen.
• B)Workers could discover movements in the aggregate price level fairly easily.
• C)The model relied on a non-market-clearing explanation of the labor market.
• D)Workers would predict higher prices if policies that led to higher prices in the past were used again.

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Definitions:

LIFO of $450,000

The last-in, first-out method applied to inventory that results in an ending balance of $450,000.

LIFO Reserve

The difference between the cost of inventory calculated using the Last In, First Out (LIFO) method and the cost calculated using the First In, First Out (FIFO) method.

FIFO Assumption

An accounting method where the first items purchased or produced are the first ones used or sold.

LIFO Reserve

The difference in value between inventory calculated using the Last-In, First-Out (LIFO) method and the First-In, First-Out (FIFO) method, used to adjust COGS and inventory valuation.