If Aggregate Demand Shifts Right, Then Eventually Price Level Expectations

question 46

True/False

If aggregate demand shifts right, then eventually price level expectations rise. The increase in price level expectations causes the short-run aggregate-supply curve to shift to the left.

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Definitions:

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or services.

Production Department

The division or area in a manufacturing facility where products are made or assembled.

Materials Price Variance

The difference between the actual cost of materials and the standard cost, multiplied by the quantity purchased.

Purchasing Department

A dedicated function in a company responsible for acquiring goods and services needed for business operations.