-From the Data in the Above Table, When the Economy

question 436

Multiple Choice

-From the data in the above table, when the economy is at its short- run equilibrium, if aggregate demand does not change, then as time passes the

• A) short- run aggregate supply curve shifts rightward.
• B) long- run aggregate supply curve shifts leftward.
• C) long- run aggregate supply curve shifts rightward.
• D) short- run aggregate supply curve shifts leftward.

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Definitions:

Variable Component

Part of a cost or expense that varies with changes in activity level, production volume, or sales.

Fixed Component

The portion of a cost that remains constant regardless of the level of activity or output.

Overhead Efficiency

A measure of how effectively a business uses its overhead costs in the production process, often improving profit margins when increased.

Overapplied

In cost accounting, it refers to a situation where the allocated overhead for a period is more than the actual overhead incurred.