Which of the Following Occurs While Moving Along a Short-Run

question 265

Multiple Choice

Which of the following occurs while moving along a short-run aggregate supply curve?

• A) Neither the price level nor the money wage rate changes.
• B) The money wage rate and the price level change by the same percentage.
• C) The price level changes and the money wage rate is constant.
• D) The money wage rate changes and the price level is constant.

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Definitions:

Retail Inventory Method

An accounting method used by retailers to estimate their inventory's ending value by using a cost to retail price ratio.

Cost Flow Assumptions

An accounting method that determines the cost of goods sold and ending inventory based on the presumed flow of inventory costs.

Cost-to-Retail Ratio

A method used in retail to calculate the cost of goods sold based on the ratio of the cost of goods available for sale to the retail price of the goods.

Retail Inventory Method

An accounting method used by retailers to estimate inventory levels by incorporating the cost to retail price ratio.