If the U.S. Aggregate Price Level Falls

question 13

Multiple Choice

If the U.S. aggregate price level falls

• A) the purchasing power of wealth declines.
• B) net exports rise.
• C) interest rates go up.
• D) the aggregate demand curve shifts to the right.

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Definitions:

Process Costing

A costing method used where similar items are produced in a continuous manufacturing environment, assigning costs based on the process they go through.

Direct Materials

Direct Materials are raw materials that are directly traceable and allocable to a finished product in the manufacturing process.

Work in Process Inventory

Items currently undergoing production but have not yet reached completion.

Lower of Cost

A principle requiring that inventory be recorded at the lower of its historical cost or current market value.