Assuming an Upward-Sloping Aggregate Supply Curve,when Aggregate Demand Increases,unemployment

question 73

Multiple Choice

Assuming an upward-sloping aggregate supply curve,when aggregate demand increases,unemployment

• A)Decreases,and the price level decreases.
• B)Increases,and the price level decreases.
• C)Decreases,and the price level increases.
• D)Increases, and the price level increases.

---

Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Net Income

An entity's earnings after all expenses, including taxes and operating costs, have been deducted from revenues.

Physical Inventory

The process of counting and verifying the actual quantities of merchandise or goods in stock.

Absorption Cost

An accounting method that assigns all manufacturing costs (both fixed and variable) to products, making them fully absorbed into the cost of goods sold.