When the Aggregate Demand Curve Shifts to the Right, _____

question 14

Multiple Choice

When the aggregate demand curve shifts to the right, _____.

• A) the level of national output decreases in real terms
• B) national output in the economy remains unchanged
• C) the willingness to demand national output increases
• D) the level of inflation in the economy falls

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Definitions:

Process Costing

Process costing is a method of assigning production costs to units of output in industries where the products are indistinguishable from each other and produced in a continuous process.

Weighted-Average Method

An inventory costing method that assigns an average cost to each unit of inventory, factoring in both the cost and quantity of goods available.

Material Cost

The total expense incurred to acquire materials used in the making of a product, including direct and indirect materials.