Figure 7-1 -Refer to Figure 7-1.A Movement from Point a to Point

question 71

Multiple Choice

Figure 7-1

-Refer to Figure 7-1.A movement from point A to point B

• A)is a change in aggregate demand resulting from a lower price level.
• B)is change in aggregate quantity demanded resulting from a lower price level.
• C)could be due to an increase in investment demand.
• D)occurs because aggregate output supplied has increased.

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Definitions:

Direct Materials

The raw materials that are used directly in the manufacturing of a product and can be easily traced to it.

Journal Entry

A record in the accounting journal that represents a business transaction, including information such as the date, accounts affected, and amounts debited and credited.

Process Costing System

An accounting system used to evaluate the cost associated with a production process that continuously produces homogeneous products.

Raw Materials Inventory

The total cost of all parts and materials held in stock by a company that are intended for use in production.