-Refer to the Above Graph

question 14

Multiple Choice

-Refer to the above graph.The economy is at point B₂,and aggregate demand increases.In the short run,the economy will:

• A) stay at point B₂.
• B) move to point C₂ and in the long run to B₃.
• C) move to point B₃ and in the long run to C₂.
• D) move to point B₁ and in the long run to B₁.

---

Definitions:

Inventory Accounts

Inventory accounts are accounting records that track the quantity and value of products a company holds for sale.

Raw Materials

Basic materials or substances used in the production or manufacturing process to create finished goods.

Finished Goods

Merchandise that has concluded its fabrication phase and is set for market sale to end-users.

Management Accounting

Management accounting involves the preparation of financial reports and analyses to help managers in decision-making processes related to the operation and strategic planning of a company.