Use the Figure Below to Answer the Following Question(s)

question 36

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 9-2
-Figure 9-2 indicates that the output of the economy, y₁, is

• A)greater than the economy's long-run capacity.
• B)equal to the economy's long-run capacity.
• C)less than the economy's long-run capacity.
• D)in short-run equilibrium but not long-run equilibrium.

---

Definitions:

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and written off as a loss.

Quality of Receivables

An assessment of the likelihood that the receivables will be collected on time, reflecting the creditworthiness of a company's customers.

Likelihood of Collection

The probability that debts owed to a company will be paid by its debtors.

Materiality Constraint

An accounting principle that states financial information is material if its omission could influence decisions.