Exhibit 16-3 -In Exhibit 16-3,the Natural Rate of Unemployment Is

question 92

Multiple Choice

Exhibit 16-3
-In Exhibit 16-3,the natural rate of unemployment is

• A) 2 percent because it occurs at the intersection of the curves
• B) 4 percent because it is the midpoint of the short-run curve
• C) 4 percent because it is on the long-run curve
• D) 8 percent because it is the most the economy can attain with high inflation
• E) 10 percent because it is the most the economy can attain

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Definitions:

FIFO

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

Average Cost

A method of inventory valuation where the cost of goods sold and ending inventory are calculated based on the average cost of all similar items held in inventory.

Inventory System

The method a company uses to manage and track its inventory, ensuring the right quantity of products at the right time and minimizing costs.

Perpetual

A system of inventory management wherein updates are made continuously to the inventory accounts after each purchase or sale.