-Based on the Data in the Table Above, in the Adjustment

question 71

Multiple Choice

-Based on the data in the table above, in the adjustment towards the long- run equilibrium

• A) the aggregate demand curve will shift leftward.
• B) money wage rates will rise.
• C) the short- run aggregate supply curve will shift leftward.
• D) the short- run aggregate supply curve will shift rightward.

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Definitions:

Beginning Cash Balance

The amount of cash a company has at the start of a new financial period, carried over from the end of the previous period.

Cost of Goods Sold

The expenses incurred that are directly related to the manufacturing of products a company sells, including labor and materials.

Inventory Purchases

The process of acquiring goods or raw materials that a business holds for the ultimate goal of resale or production.

Merchandise

Products that are purchased and sold during business activities.