Long-Run Macroeconomic Equilibrium Occurs When Aggregate Demand ________ Short-Run Aggregate

question 15

Multiple Choice

Long-run macroeconomic equilibrium occurs when aggregate demand ________ short-run aggregate supply and they ________ the long-run supply curve.

• A)equals;intersect at a point to the right of
• B)equals;intersect at a point on
• C)is greater than;intersect at a point to the left of
• D)is less than;intersect at a point to the right of

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Definitions:

FIFO Method

An inventory valuation method that assumes goods purchased first are the first sold, standing for "First-In, First-Out."

Conversion Costs

The total expenses of direct labor together with manufacturing overheads spent in transforming raw materials into completed products.

Process Cost Accounting System

A bookkeeping mechanism for distributing costs among similar items that are produced in large scale and without interruption.

Equivalent Units of Production

A concept in cost accounting used to assign costs to partially completed goods, calculated by taking the number of units in the production process and converting them into a number of completed units.