Aggregate Supply Refers to the

question 68

Multiple Choice

Aggregate supply refers to the

• A)effects of increases in input prices on output.
• B)total output firms wish to produce at each price level.
• C)economy's potential output at each possible labour force.
• D)decisions of firms to decrease inputs in order to produce outputs.
• E)supply of labour inputs in the economy.

---

Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, rent, and salaries for non-direct labor.

Raw Materials Inventory

The total cost of all components and raw materials that a company has in stock, which are intended to be used in the production of finished goods.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Job Order Cost System

An accounting system that assigns costs to individual units or batches of production, often used in manufacturing where products are custom made.