Figure 11-5 -Refer to Figure 11-5. Assume That the Economy Is at Economy

question 170

Multiple Choice

Figure 11-5
-Refer to Figure 11-5. Assume that the economy is at point b. A decrease in the money supply would cause

• A) a shift of the aggregate demand curve from AD₁ to AD₂.
• B) a shift of the aggregate demand curve from AD₂ to AD₁.
• C) a shift of the short-run aggregate supply curve from AS₁ to AS₂.
• D) a shift of the short-run aggregate supply curve from AS₂ to AS₁.

---

Definitions:

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Cash Collections

The process of gathering all payments or receivables a company has earned from its sales or services.

Budgeted Sales

A financial estimation of the future sales revenue of a company over a specific period, forming part of the broader company budget.

Budgeted Sales Data

Projections or estimates of sales for a future period, used for planning and forecasting purposes.