Which of the Following Is Incorrect

question 85

Multiple Choice

Which of the following is incorrect?

• A)As the Canadian price level rises, Canadian goods become relatively more expensive so that its exports fall and its imports rise.
• B)As the price level falls, the demand for money declines, the interest rate declines, and interest rate-sensitive spending increases.
• C)When the price level increases, real balances increase, businesses and households find themselves wealthier and therefore increase their spending.
• D)Given aggregate demand, an increase in aggregate supply increases real output and, assuming downward flexible prices, reduces the price level.

---

Definitions:

Job-Order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batch of products, making it possible to track the cost of specific jobs.

Machine-Hours

A measure of production time, used as a basis for allocating manufacturing overhead costs based on the number of hours machines are operated.

Job M598

A specific production or project task within a job order costing system, identified by the code M598 for tracking its associated costs and progress.

Unit Product Cost

The total cost to produce one unit of product, including materials, labor, and overhead.