If the Aggregate Demand Curve Shifts Rightward,then _____

question 132

Multiple Choice

If the aggregate demand curve shifts rightward,then _____.

• A)the price level increases and output decreases
• B)the resulting increase in the price level is usually called cost-push inflation
• C)the resulting increase in the price level is usually called demand-pull inflation
• D)the price level increases as long as the aggregate supply curve shifts leftward
• E)the price level decreases and output decreases

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Definitions:

Manufacturing Overhead

Costs related to the manufacturing process that cannot be directly linked to specific products, including utility costs, depreciation, and maintenance of equipment.

Predetermined Overhead Rate

An allocated rate used to apply manufacturing overhead to products or job orders, estimated at the start of an accounting period.

Job-Order Costing

A costing system used to accumulate costs for individual jobs or orders, typically used when products or services are distinct and customized.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or job orders based on a selected activity base.