Refer to the Information Provided in Figure 11

question 233

Multiple Choice

Refer to the information provided in Figure 11.3 below to answer the questions that follow. Figure 11.3
-Refer to Figure 11.3. A shift from AS₁ to AS₂ represents a(n)

• A) increase in aggregate supply.
• B) decrease in aggregate supply.
• C) increase in aggregate quantity supplied.
• D) decrease in aggregate quantity supplied.

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Definitions:

Expenditure Basis

An accounting method that recognizes expenses when they are paid rather than when they are incurred.

Expense Basis

An accounting method where expenses are recognized and recorded when they are incurred, regardless of when the cash payment is made.

Encumbrance Accounting

An accounting method used mainly by governments that tracks commitments in their budgets, earmarking funds for specific future expenditures.

Purchase Order

A commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.