An Increase in Aggregate Expenditures Resulting from Some Factor Other

question 283

Multiple Choice

An increase in aggregate expenditures resulting from some factor other than a change in the price level is equivalent to

• A) a rightward shift of the aggregate demand curve in the AD-AS model.
• B) a leftward shift of the aggregate demand curve in the AD-AS model.
• C) a movement downward along a fixed aggregate demand curve in the AD-AS model.
• D) a decrease in aggregate supply in the AD-AS model.

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Definitions:

Weighted-Average Method

An inventory costing method that assigns a cost to inventory on the basis of the average cost of all similar items in the inventory.

Lubricating Department

A specialized division in a manufacturing or maintenance facility focused on the application of lubricants to machinery and equipment to reduce friction and wear.

Assembly Department

A section in a manufacturing plant where components are assembled into finished goods.

Beginning Work

The value or quantity of inventory on hand at the start of a accounting period before any production or sales activities have occurred.