In the Short Run, Demand-Pull Inflation Increases

question 181

Multiple Choice

In the short run, demand-pull inflation increases

• A) real wages, but in the long run only nominal wages.
• B) nominal wages, but in the long run only real wages.
• C) real output and the price level, but in the long run only real output.
• D) real output and the price level, but in the long run only the price level.

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Definitions:

Job-Order Costing System

A cost accounting system in which costs are assigned to specific jobs or orders, used in industries where goods or services are produced to order.

Machine-Hours

A measure of production time which quantifies the number of hours a machine is in operation.

Overhead Applied

The portion of overhead costs that are allocated to products or cost objects based on a predetermined overhead rate.

Customizing Department

A segment within a manufacturing or service company dedicated to modifying products or services to meet specific customer requests or needs.