The Long-Run Model Determines ________ Output and ________, While the Short-Run

question 22

Multiple Choice

The long-run model determines ________ output and ________, while the short-run model determines ________ and ________ inflation.

• A) potential; long-run inflation; current output; current
• B) potential; unemployment; current output; long-run
• C) current; long-run inflation; unemployment; current
• D) potential; unemployment; unemployment; current
• E) current; unemployment; potential output; current

---

Definitions:

Periodic Inventory System

An inventory accounting system that updates inventory balances and cost of goods sold at the end of an accounting period.

Cost Of Goods Sold

A financial measure that calculates the cost incurred to produce products sold by a company, including materials and labor.

Gross Profit

The income a business earns once it subtracts the expenses involved in producing and marketing its goods, or the expenses related to delivering its services.

Other Revenue And Expenses

These refer to the income and costs that are not related to the main business activities of a company.