What Is Sometimes Called the "Long- Run Aggregate Supply Curve

question 26

Multiple Choice

What is sometimes called the "long- run aggregate supply curve" relates the aggregate price level to real GDP

• A)when technology is allowed to change.
• B)in the short run.
• C)after factor prices have fully adjusted to eliminate output gaps.
• D)when wages are in adjustment but prices are unstable.
• E)when national income is at less than potential income.

---

Definitions:

Activity-Based Costing

A costing method that allocates overhead and indirect costs to specific activities, providing more accurate product costing.

Direct Labor Rate

The cost of the work done by those employees who directly manufacture the products, usually measured per hour.

Direct Materials Cost

The expense associated with acquiring raw materials that are directly utilized in the manufacture of goods.

Traditional Costing

Traditional costing is an accounting method that allocates manufacturing overhead based on volume-related measures, such as direct labor hours or machine hours.