Refer to the Above Diagram

question 94

Multiple Choice

Refer to the above diagram.The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁.In the long run, demand-pull inflation is best shown as:

• A)a shift of aggregate demand from AD₁ to AD₂ followed by a shift of aggregate supply from AS₁ to AS₂.
• B)a move from d to b to a.
• C)a shift of aggregate supply from AS₁ to AS₂ followed by a shift of aggregate demand from AD₁ to AD₂.
• D)a move from a to d.

---

Definitions:

Activity-Based Costing

A costing method that assigns costs to products and services based on the activities required to produce the product or deliver the service.

Customer Support

The service provided by a company to assist its customers in using products or services efficiently and satisfactorily.

Time-Driven

An aspect or method that is based on the duration or amount of time required to perform tasks or processes.

Activity-Based Costing

Activity-based costing is a method of allocating overhead costs to products or services based on the activities that consume resources, aiming for more accurate product costing.