FIGURE 21-3 -Refer to Figure 21-3.If National Income Is Y₃ and the and the Aggregate

question 32

Multiple Choice

FIGURE 21-3
-Refer to Figure 21-3.If national income is Y₃ and the aggregate expenditure function is AE₁,

• A)the economy is in equilibrium.
• B)there is unintended inventory accumulation and income will rise.
• C)there is unintended inventory accumulation and income will fall.
• D)there is unintended inventory decumulation and income will rise.
• E)there is unintended inventory decumulation and income will fall.

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Definitions:

Controlling Account

The account in the general ledger that summarizes the balances of the accounts in a subsidiary ledger.

Purchases Journal

The purchases journal is a financial record keeping system where a business logs all purchases of inventory on credit, excluding cash purchases.

Store Supplies

Consumable items used in the day-to-day operations of a retail store, such as bags, cleaning materials, and office supplies.

Damaged Office Equipment

Damaged office equipment refers to workplace tools and machines that have been impaired or broken, affecting their functionality.