FIGURE 29-2 Refer to Figure 29-2

question 110

Multiple Choice

FIGURE 29-2 Refer to Figure 29-2.The movement of the economy from E₀ to E₁ was likely caused by a

• A)positive demand shock associated with increased investment.
• B)negative demand shock due to government cut-backs.
• C)negative supply shock due to a rise in input prices.
• D)positive supply shock induced by developments of new technology.
• E)positive supply shock caused by lower nominal wages.

---

Definitions:

FIFO

First In, First Out, an inventory valuation method where the first items placed in inventory are the first sold.

Specific Identification

An inventory valuation method wherein the costs of individual inventory items are tracked and used to determine the cost of goods sold.

Retail Industry

A sector that consists of businesses selling consumer goods directly to customers, involving a range of stores and online platforms offering merchandise from food to fashion.

Periodic Inventory System

An accounting method where the inventory is physically counted at the end of a certain period, used to calculate the cost of goods sold and determine inventory levels.