The Price Level Rises in the Short Run If

question 67

Multiple Choice

The price level rises in the short run if

• A)aggregate demand or aggregate supply shifts right.
• B)aggregate demand shifts right or aggregate supply shifts left.
• C)aggregate demand shifts left or aggregate supply shifts right.
• D)aggregate demand or aggregate supply shifts right

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Definitions:

Net Operating Income

The income derived from a company's primary business activities, not including costs or income from activities not related to its main operations.

Margin Of Safety

The difference between actual or projected sales and the sales level at which the business doesn't incur any loss but doesn't make a profit either.

Contribution Format

A type of income statement formatting that separates fixed and variable costs, helping to analyze the impact of sales volume on net income.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues, excluding non-operating income and expenses.