Refer to the Graph Above

question 104

Multiple Choice

Refer to the graph above. Assume the economy is at the initial position of B₂. It is possible for the government to reduce the unemployment rate and move the economy to C₂ if:

• A) Expected inflation remains at 4%
• B) Expected inflation becomes 8%
• C) Actual inflation remains at 4%
• D) Actual inflation is at 12%

---

Definitions:

Disbursements

Financial payments made by a business, including cash expenditures, payments on debts, or distribution of dividends.

Beginning Balance

The amount of money in a given account at the start of a financial period.

Petty Cash Fund

A small amount of cash kept on hand for making immediate, minor expenditures.

Journal Entries

The recordation of financial transactions in a company's accounting system, typically involving a debit and credit entry.