If Oil Prices Increase, Then in the Short Run, Real

question 16

Multiple Choice

If oil prices increase, then in the short run, real GDP will _{--------------------}and the price level will_{--------------------}
.

• A)increase; fall
• B)not change; rise
• C)decrease; rise
• D)decrease; fall
• E)increase; rise

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Definitions:

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity resource to all products and services according to the actual consumption.

Activity Cost Pools

A grouping of all costs related to a particular business activity, used in activity-based costing to allocate costs more accurately.

Machine-Hours

A measurement of the amount of time machines are used in production during a specific period.

Batches

Batches refer to a specific quantity of material or products processed or produced at one time in a manufacturing or production process.