A Price Shock Is

question 33

Multiple Choice

A price shock is

• A)a shift in the aggregate demand curve.
• B)the same as a demand shock.
• C)a change in potential GDP.
• D)the same as a supply shock.
• E)a shift in the inflation adjustment line.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including both materials and labor expenses.

Inventory

Items held by a company for sale in the ordinary course of business or to be used in the production of goods sold.

Contra-Revenue Accounts

Accounts used to record reductions in gross revenue, such as sales returns, allowances, and discounts, to arrive at net revenue.

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from total sales revenue, representing the efficiency of a company in managing its production and sales.