Figure 17-11 -Refer to Figure 17-11.In the Dynamic Model of AD-AS in Model

question 56

Multiple Choice

Figure 17-11

-Refer to Figure 17-11.In the dynamic model of AD-AS in the figure above,if the economy is at point A in year 1 and is expected to go to point B in year 2,and the Federal Reserve pursues no policy,then at point B

• A)there is pressure on wages and prices to rise.
• B)the unemployment rate is very, very low.
• C)firms are operating above their normal capacity.
• D)the economy is below full employment.
• E)incomes and profits are rising.

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Definitions:

Job-Order Costing

A cost accounting system that accumulates costs for each distinct job or batch, used in situations where products or services are distinctly customizable.

Selling Price

The amount of money charged for a product or service, or the sum for which something is sold on the market.

Unit Product Costs

Unit product costs are the total expense incurred to produce, store, and sell one unit of a product, including material, labor, and overhead rates.

Job M825

A specific task or project identified by a unique code, in this case, M825, likely within a job costing system.