Refer to the Diagram Given Below

question 175

Multiple Choice

Refer to the diagram given below. When the real output decreases from Q₁ and the price level increases from P₁, there should have been a:

• A)shift in the aggregate supply curve from AS₁ to AS₃.
• B)shift in the aggregate supply curve from AS₂ to AS₁.
• C)movement along the aggregate demand curve from e₂ to e₁.
• D)movement along the aggregate demand curve from e₁ to e₂.

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Definitions:

Operating Expenses

Costs associated with the daily operations of a business, excluding the cost of goods sold.

Accounts Receivable

Funds that customers owe to a business for products or services delivered but have not yet been paid for.

Beginning Inventory

The inventory on hand at the start of an accounting period, which is the ending inventory of the previous period.

Ending Inventory

The total value of all unsold goods remaining at the end of an accounting period.