Inflation Is Caused When

question 13

Multiple Choice

Inflation is caused when

• A)supply cannot keep pace with demand.
• B)supply and demand achieve near balance.
• C)taxes are raised too high.
• D)high rates of unemployment prevent consumers from buying goods.
• E)the government artificially curbs demand for goods and services.

---

Definitions:

Posting Reference Notation

A unique code or number used to track the entry of a transaction in the accounting records to its source document.

Journal

A book or electronic record in which transactions are recorded in chronological order before they are posted to ledger accounts.

Page Number

A number assigned to a specific page in a document or book to facilitate organization and reference.

Journalizing

Journalizing is the process of recording transactions in the company's journal, marking the first step in the accounting cycle by documenting all financial transactions.