Whenever the General Level of Prices Rises Because of Continual

question 76

Multiple Choice

Whenever the general level of prices rises because of continual increases in aggregate demand,we say that the economy is experiencing

• A)cost-push inflation.
• B)monetary stagflation.
• C)demand-pull inflation.
• D)aggregate supply shock.

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Definitions:

Sales Mix

The relative proportions in which a company’s products are sold. Sales mix is computed by expressing the sales of each product as a percentage of total sales.

Monthly Sales

The total revenue generated from sales activities during a specific month, often used as a measure of business performance.

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in zero net profit or loss.

Variable Expenses

Costs that fluctuate with production or sales volume, such as materials, utilities, and commissions.