Last Year the Price Level Increased from 118 to 122

question 52

Multiple Choice

Last year the price level increased from 118 to 122.The increase in the price level leads to a decrease in

• A)potential GDP.
• B)the buying power of money.
• C)the real interest rate.
• D)the money wage rate.
• E)the price of domestic goods and services relative to foreign goods and services.

---

Definitions:

Target Profit

The intended financial goal a company plans to achieve in a specific period through its operational activities.

Contribution Format

A type of income statement where costs are categorized based on their variability (variable or fixed), used in managerial accounting.

Sold Units

The number of units of product that have been sold to customers.

Contribution Margin Ratio

The percentage of sales revenue remaining after variable costs are deducted, indicating the portion contributing towards fixed costs and profit.