Demand- Pull Inflation Can Start When

question 99

Multiple Choice

Demand- pull inflation can start when

• A) the aggregate demand curve shifts rightward.
• B) money wage rates rise faster than prices.
• C) the short- run aggregate supply curve shifts rightward.
• D) money wage rates rise but the price level does not change.

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Definitions:

Contribution Format Income Statement

An income statement format that separates variable costs from fixed costs, highlighting the contribution margin.

Unit Sales

The total number of individual items or units that a company sells during a certain period.

Contribution Margin Ratio

The contribution margin ratio is the ratio of the contribution margin (sales minus variable costs) to sales revenue, indicating the percentage of each sales dollar available to cover fixed costs and provide profit.

Fixed Monthly Expenses

Costs that do not vary from month to month, such as rent, loan payments, and insurance premiums.