Suppose There Is an Increase in the Availability of an Important

question 130

Multiple Choice

Suppose there is an increase in the availability of an important major resource, such as oil. Which shift would most likely occur?

• A) The aggregate supply would shift right.
• B) The aggregate supply would shift left.
• C) The aggregate demand would shift right.
• D) The aggregate demand would shift left.

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Definitions:

Direct Labor

The wages and benefits for employees who are directly involved in the production of goods or the provision of services.

Planning Budget

A budget created for a specific level of activity; it can be adjusted over time to reflect actual business conditions.

Administrative Expenses

Costs associated with the general administration of a business, including office supplies and salaries of non-production staff.

Planning Budget

A forecast of revenue, expenses, and cash flow used by organizations to plan for the upcoming period.