How Is the Effect of an Increase in the Price

question 239

Multiple Choice

How is the effect of an increase in the price level represented?

• A) by a shift to the right of the aggregate-demand curve
• B) by a shift to the left of the aggregate-demand curve
• C) by a movement to the left along a given aggregate-demand curve
• D) by a movement to the right along a given aggregate-demand curve

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Definitions:

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks to evaluate actual production costs.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives to solve problems or create useful products.

Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold. These are considered liquid assets.

Standard Price

A predetermined cost or selling price of a product or service, often used in budgeting and accounting to measure variances in actual cost or price.