Consider the Basic AD/AS Model with an Upward- Sloping AS Curve

question 42

Multiple Choice

Consider the basic AD/AS model with an upward- sloping AS curve. A positive aggregate demand shock will cause

• A)the equilibrium point to move rightward along the AS curve.
• B)the unemployment rate to remain constant.
• C)a movement along the AD curve to the right.
• D)a shift to the right in the AS curve.
• E)a decrease in the price level.

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Definitions:

Cost Flow Assumptions

Methods used to assign costs to inventory and goods sold, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

Unit Cost

The cost incurred to produce, acquire or handle one unit of a product or service.

Appropriate Code

A specific numerical or alphanumeric identifier used to classify and organize data, transactions, or items according to established criteria.

Merchandise Inventory

The value of the products that a company has in stock and intends to sell.