Workers Expect Inflation to Rise from 3% to 5% Next

question 125

Multiple Choice

Workers expect inflation to rise from 3% to 5% next year.As a result,this should

• A)shift the short-run aggregate supply curve to the left.
• B)shift the short-run aggregate supply curve to the right.
• C)move the economy up along a stationary short-run aggregate supply curve.
• D)move the economy down along a stationary short-run aggregate supply curve.

---

Definitions:

Work In Process Inventory

Goods in the manufacturing process that are not yet complete, representing a portion of inventory on a company's balance sheet.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead cost exceeds the actual manufacturing overhead expenses incurred.

Standard Costing System

A cost accounting method that assigns expected costs to each unit of product to help managers monitor performance.

Direct Labour Hours

The total hours worked by employees directly involved in the manufacturing process or providing a service.