Which of the Following Would Not Shift the Aggregate Supply

question 17

Multiple Choice

Which of the following would not shift the aggregate supply curve?

• A)an increase in labour productivity
• B)a decline in the price of imported oil
• C)a decline in business taxes
• D)an increase in the price level

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Definitions:

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to a change in its sales volume, signifying the impact of fixed versus variable costs.

Variable Expenses

Costs that vary directly with the level of production or sales volume, such as raw materials, direct labor, and sales commissions.

Fixed Expenses

Costs that remain constant for a set period of time, regardless of changes in the level of production or sales volume.

Break-Even Sales

The amount of revenue required to cover both the fixed and variable costs of a business, resulting in neither profit nor loss.