Use the Following Graph to Answer the Following Questions

question 4

Multiple Choice

Use the following graph to answer the following questions.The graph depicts an economy where aggregate demand and long-run aggregate supply (LRAS) have decreased,with no change in short-run aggregate supply (SRAS) .

-As a result of aggregate demand and long-run aggregate supply decreasing,we can see that the price level ________ and real gross domestic product (GDP) ________.

• A) remained unchanged; decreased
• B) increased; decreased
• C) decreased; remained unchanged
• D) remained unchanged; increased
• E) increased; increased

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Definitions:

Common Stockholders' Equity

The portion of a company's equity that is attributable to common stockholders, calculated as total assets minus total liabilities minus preferred stock equity.

Inventory Turnover

Inventory turnover is a measure of how frequently a company sells and replaces its stock of goods within a certain period, indicating the efficiency of inventory management.

Inventory Management

The process of ordering, storing, using, and selling a company's inventory, which includes both raw materials and finished goods.

Days' Sales

A financial metric that estimates the average time it takes for a company to collect cash from its customers after a sale has been made, often related to inventory turnover.