The Diagram Below Shows an AD/AS Model for a Hypothetical

question 106

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-4 Refer to Figure 24-4.After the positive aggregate supply shock shown in the diagram,which of the following would shift the AS curve leftward during the economy's adjustment process?

• A)an increase in factor supplies
• B)an increase in the unemployment rate
• C)a decrease in wages and other factor prices
• D)an increase in labour productivity
• E)an increase in wages and other factor prices

---

Definitions:

Subsidiary Ledgers

Detailed financial books that complement the general ledger by tracking individual accounts or categories, such as accounts payable or receivable.

Job Order Costing

An accounting method that tracks costs for each individual job or project, assigning direct materials, labor, and overhead based on each job's unique requirements.

Underapplied Factory Overhead

The amount of actual factory overhead in excess of the factory overhead applied to production during a period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly involved in creating the product.