Which of the Following Statements Is INCORRECT

question 153

Multiple Choice

Which of the following statements is INCORRECT?

• A) The natural rate of unemployment is generally considered the equivalent of full employment.
• B) The natural rate of unemployment consists of only frictional or structural unemployment.
• C) The natural rate of unemployment is the level at which inflationary pressures in the economy are at their maximum.
• D) The natural rate of unemployment is when cyclical unemployment is zero.

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Definitions:

Accounts Payable

The total sum a business must pay to its suppliers or creditors for products and services obtained on credit.

Inventory

Goods and materials that a business holds for the ultimate goal of resale, production, or utilization in manufacturing.

Receivable Turnover

A financial metric indicating how efficiently a company collects revenue from its credit customers by measuring the number of times average accounts receivable are collected during a period.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.