If There Are Floods or Droughts or a Decrease in the Availability

question 17

Multiple Choice

If there are floods or droughts or a decrease in the availability of raw materials

• A)aggregate supply shifts right.
• B)output falls in the short run.
• C)prices fall in the short run.
• D)None of the above is correct.

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Definitions:

Income Statement

A financial document that shows a company's revenues, expenses, and profit or loss over a specific period.

Classify

To arrange or organize items into categories based on shared characteristics or criteria.

Perpetual Inventory System

A method of inventory management where updates are made continuously as transactions occur, providing real-time inventory levels.

Selling Price

The price at which goods or services are offered for sale to customers.