-In the Above Figure, If the Economy Is at Point

question 42

Multiple Choice

-In the above figure, if the economy is at point A, which of the following is TRUE?

• A) There is a recessionary gap.
• B) There is an inflationary gap.
• C) Point A is the long-run equilibrium point.
• D) None of the above answers are correct.

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Definitions:

Posting

Posting is the process of recording financial transactions from the journal to the respective ledger accounts, providing a detailed account of all business operations.

Journal

A detailed record where all financial transactions of a business are initially recorded before summarizing them into accounts.

General Journal

A basic accounting ledger used to record all the financial transactions of a business.

General Ledger

A complete record of a company's financial transactions over the lifespan of the organization, serving as the foundation of its financial reporting.