-Refer to the Above Graph

question 10

Multiple Choice

-Refer to the above graph.Given that the economy is at an initial equilibrium where the AD₁ and AS₁ curves intersect,demand-pull inflation in the short run can best be represented by a shift from:

• A) AS₁ to AS₃.
• B) AD₁ to AD₂.
• C) AS₁ to AS₂.
• D) AD₂ to AD₁.

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Definitions:

Equivalent Units

An approach utilized in process costing to translate partially finished units into an equivalent number of completely finished units.

First-in

A principle often related to inventory valuation where the earliest goods purchased or produced are the first ones to be sold or used.

Conversion

The process of changing resources into finished products, or converting prospects into customers.

Equivalent Units

A concept used in cost accounting to represent the amount of work done on partially completed goods, expressed in terms of fully completed units.