How Are the Effects of an Increase in the Price

question 211

Multiple Choice

How are the effects of an increase in the price level that is less than expected shown in the aggregate demand and aggregate supply model?

• A) by shifting the short-run aggregate-supply curve right
• B) by shifting the short-run aggregate-supply curve left
• C) by moving to the right along a given aggregate-supply curve
• D) by moving to the left along a given aggregate-supply curve

---

Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and can be directly associated with the finished product.

Raw Materials Purchased

The total cost of raw materials bought by a company for the purpose of production in a specific period.

Cost Of Goods Manufactured

The total expense incurred to produce products during a specific period, including costs of raw materials, labor, and manufacturing overhead.

Cost Of Goods Sold

The total cost directly linked to the production or acquisition of the goods sold by a company.