Cost-Push Inflation Occurs Because of a Shift to the

question 45

Multiple Choice

Cost-push inflation occurs because of a shift to the

• A) right of the short-run aggregate supply curve.
• B) left of the short-run aggregate supply curve.
• C) right of the aggregate demand curve.
• D) left of the aggregate demand curve.

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Definitions:

Period Costs

Expenses that are not directly tied to the production of goods, such as selling, general, and administrative costs, and are expensed in the period they are incurred.

Factory Rent

The cost incurred by a business for leasing a manufacturing facility or space where production activities are carried out.

Factory Overhead

All the supplementary costs tied to manufacturing, aside from the expenses of direct materials and direct labor.

Amortization

The periodic transfer of the cost of an intangible asset to expense.