If Consumption Increases

question 25

Multiple Choice

If consumption increases,

• A) the SRAS curve will shift rightward,which will push the price level up.
• B) the SRAS curve will shift leftward,which will push the price level up.
• C) the AD curve will shift leftward,which will push the price level down.
• D) the AD curve will shift rightward,which will push the price level up.

---

Definitions:

Activity Rate

The cost driver rate that is used in activity-based costing to allocate overhead costs to products or services.

Activity Cost Pool

A grouping of all costs related to a specific activity or process in a company, used in activity-based costing.

Activity-Based Costing

A costing method that assigns costs to products based on the activities that go into making them, providing a more detailed measure of costs.

Overhead Applied

A calculation that allocates a portion of estimated overhead costs to individual units of production based on a predetermined formula.