Refer to the Above Diagram

question 42

Multiple Choice

Refer to the above diagram.If the equilibrium price level is P₁, then:

• A)aggregate demand is AD₂.
• B)the equilibrium output level is Q₃.
• C)the equilibrium output level is Q₂.
• D)producers will supply output level Q₁.

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Definitions:

Closing Entries

The journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts.

Adjusting Entries

Accounting entries recorded at the conclusion of a financial period to properly assign income and expenses to the period they truly relate to.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby preparing the accounts for the next period.

Journalized

Refers to the act of recording financial transactions in the company's journal as part of the accounting process.