When Aggregate Demand Shifts Right Along the Short-Run Aggregate Supply

question 24

Multiple Choice

When aggregate demand shifts right along the short-run aggregate supply curve,unemployment

• A)falls,so there are upward pressures on wages and prices.
• B)falls,so there are downward pressures on wages and prices.
• C)rises,so there are upward pressures on wages and prices.
• D)rises,so there are downward pressures on wages and prices.

---

Definitions:

Activity Cost Pools

Aggregations of overhead costs attributed to distinct activities, used in activity-based costing to assign costs more precisely to products or services.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities and resources that go into producing them.

Direct Materials Cost

The cost of raw materials and components that are directly traceable to the production of goods.

Direct Labor Cost

The cost associated with the labor of employees directly involved in the production of goods or services.