A Vertical Aggregate Supply Curve

question 6

Multiple Choice

A vertical aggregate supply curve

• A)Implies that supply-side policies will have no effect on the macro equilibrium.
• B)Implies that aggregate demand shifts have no impact on output.
• C)Is likely in the short run.
• D)Reflects the inflexibility of prices and wages.

Analyze the effects of production level changes on inventory valuation under absorption costing.

Calculate and interpret net operating income under variable and absorption costing.

Understand the significance of fixed and variable costs in product pricing and profitability analysis.

Identify and calculate the total contribution margin under variable costing.