The Short-Run Phillips Curve Shifts When

question 30

Multiple Choice

The short-run Phillips curve shifts when

• A) the actual unemployment rate changes and also when the expected unemployment rate changes.
• B) the expected unemployment rate changes and also when the expected inflation rate changes.
• C) the inflation rate increases and also when the unemployment rate decreases.
• D) the natural unemployment rate changes and also when the expected inflation rate changes.
• E) the actual inflation rate changes and also when the expected inflation rate changes.

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Definitions:

Total Materials Costs

The total expense incurred for materials used in the production of goods, including direct and indirect materials.

Equivalent Units

A concept in costing that converts partially completed goods into a number of completed units, facilitating cost calculation.

Conversion Costs

Costs that are incurred to convert raw materials into finished goods, typically including direct labor and manufacturing overhead.

Work in Process

Refers to the cost of unfinished goods in manufacturing at a specific point in time, including labor, raw materials, and overhead.