-In the Above Figure, If the Economy Is in Equilibrium

question 303

Multiple Choice

-In the above figure, if the economy is in equilibrium at E1, then

• A) the economy is producing below its potential long-run equilibrium at full employment.
• B) the economy is producing above its potential long-run equilibrium at full employment.
• C) there is an inflationary gap in the economy.
• D) the economy is in a period of high inflation.

---

Definitions:

Petty Cash

A small amount of cash on hand used for covering minor expenses.

Petty Cash Fund

A small amount of cash kept on hand for making immediate payments for minor expenses.

Auxiliary Petty Cash Record

A supplementary record for summarizing petty cash information.

First Aid Supplies

First aid supplies are materials and equipment used for providing initial care in case of illness or injury, commonly including bandages, antiseptics, and basic medical tools.