Which of the Following Is True

question 48

Multiple Choice

Which of the following is true?

• A) Inflation and unemployment rates can both increase in the short run in response to positive supply shocks.
• B) Inflation and unemployment rates can both decrease in the short run in response to reduced aggregate demand.
• C) Inflation and unemployment rates can both decrease in the short run in response to negative supply shocks.
• D) none of the above

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Definitions:

Direct Materials

The raw materials directly traceable to the production of specific goods or services, considered a variable cost.

Period Cost

Expenses that are not directly tied to the production of goods, such as selling, general, and administrative expenses, which are expensed in the period incurred.

Factory Maintenance Equipment

Tools, machinery, and other equipment used for the upkeep of a manufacturing facility.

Company Showroom

is a dedicated space where a business displays its products or prototypes for customers to view, typically used for marketing and sales purposes.