Which of the Following Factors Will Not Shift the Long-Run

question 7

Multiple Choice

Which of the following factors will not shift the long-run aggregate supply curve?

• A)An increase in capital accumulation
• B)An increase in available resources
• C)An increase in the price level
• D)An improvement in production technology

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Definitions:

Labor Efficiency Variance

A measure of the difference between the actual hours worked and the standard hours expected, to produce a certain level of output.

Labor Rate Variance

The difference between the actual labor costs and the budgeted or standard labor costs, often due to differences in wage rates or work hours.

Standard Cost System

An accounting system that assigns predetermined costs to products and services, which are then compared to actual costs for variance analysis.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant portion of production costs.