If Real GDP Is Greater Than Potential GDP,then to Restore

question 260

Multiple Choice

If real GDP is greater than potential GDP,then to restore equilibrium,________ and the price level ________.

• A)the aggregate demand curve shifts leftward;rises
• B)the aggregate demand curve shifts rightward;falls
• C)the aggregate supply curve shifts leftward;rises
• D)the aggregate supply curve shifts rightward;falls
• E)potential GDP increases;falls

Differentiate between direct materials and conversion costs in process costing.

Calculate the total number of units to be assigned costs on the cost of production report.

Understand the role of beginning and ending inventory in process costing.

Interpret production data to calculate equivalent units for direct materials and conversion costs.

---

Definitions:

Aggregate Supply Curve

A graphical representation showing the relationship between the overall price level and the total output that producers in an economy are willing to produce at different price levels.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Real GDP Supplied

The total value of all goods and services produced by an economy, adjusted for inflation, reflecting actual productivity and supply.

Wage Rate

The standard amount of pay given for work performed, typically expressed as an hourly, daily, or piecework rate.