Figure 33-3 ​

question 119

Multiple Choice

Figure 33-3
​
-Given the situation in graph (1) in Figure 33-3, what can be expected to change in graph (1) when the economy's self-correcting mechanism operates?

• A)Aggregate demand increases.
• B)Aggregate demand decreases.
• C)Aggregate supply increases.
• D)Aggregate supply decreases.

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Definitions:

Expenses

The cost of assets consumed or services used in the process of earning revenue.

Depreciation Expense

Depreciation Expense is an accounting method of allocating the cost of a tangible asset over its useful life.

Accounts Payable

Money owed by a business to its suppliers or vendors for goods and services purchased on credit.

Operating Activities

Activities that relate to the principal revenue-producing activities of an entity and other activities that are not investing or financing activities.