A Decrease in Aggregate Supply in the Short Run Is

question 95

Multiple Choice

A decrease in aggregate supply in the short run is

• A)interpreted to mean that less total output will be supplied at any given price level.
• B)caused by a decrease in the price level.
• C)reflected in a shift to the right in the AS curve.
• D)caused by an increase in the price level.
• E)reflected in a movement to the left along the AS curve.

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Definitions:

Controllable Cost

Expenses that can be influenced or managed by decisions made by a manager or a business, such as materials or labor.

Supervisor

An individual in charge of overseeing and directing the work of a group of people.

Direct Materials

Raw materials that are used in the manufacturing process and are directly incorporated into the finished product.

Direct Labor

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