Exhibit 5-3 -In Exhibit 5-3 AD₁ and AS₁ Represent the Initial Aggregate

question 12

Multiple Choice

Exhibit 5-3
-In Exhibit 5-3 AD₁ and AS₁ represent the initial aggregate demand and aggregate supply.The initial equilibrium is at point A.Suppose that the price level in Mexico rises,what will the new equilibrium be?

• A)A
• B)B
• C)C
• D)D

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Definitions:

Cost of Goods Sold

The immediate expenses linked to the manufacturing of a company's sold products, covering the cost of materials and labor directly engaged in the product's creation.

Work in Process

Stock consisting of materials that are in the process of being transformed into final products but have not reached completion.

Finished Goods

Items that have completed the manufacturing process but have not yet been sold to customers.

Raw Materials Inventory

Stocks of the basic materials that are required to manufacture goods, kept on hand.