How Does an Increase in the Aggregate Demand Translate in the Phillips

question 53

Multiple Choice

How does an increase in the aggregate demand translate in the Phillips curve model?

• A) as an upward movement along the short-run Phillips curve
• B) as a shift to the right of the short-run Phillips curve
• C) as a downward movement along the short-run Phillips curve
• D) as a shift to the left of the short-run Phillips curve

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Definitions:

Direct Labor

The labor costs directly associated with the manufacture of products or delivery of services.

Standard Costs

The expected costs associated with producing a product or performing a service, used for budgeting and performance analysis.

Hours

A measure of time representing 60 minutes, often used to track labor or production time in business.

Cost of Goods Sold

The expenses directly associated with manufacturing the products that a company sells.