According to Aggregate Demand and Supply Analysis,the Negative Demand Shock

question 13

Multiple Choice

According to aggregate demand and supply analysis,the negative demand shock of 2000-2004 had the effect of

• A)increasing aggregate output,lowering unemployment,and raising inflation.
• B)decreasing aggregate output,raising unemployment,and raising inflation.
• C)increasing aggregate output,lowering unemployment,and lowering inflation.
• D)decreasing aggregate output,raising unemployment,and lowering inflation.

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Definitions:

Work in Process

Inventory that includes all the materials, labor, and overhead costs for products that are in the production process but not yet completed.

Property, Plant, and Equipment

Tangible long-term assets used in the operation of a business, such as buildings, machinery, and equipment.

Standard Costs

The estimated costs of materials, labor, and overhead allocated to produce a product or perform a service under normal conditions.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production process.