At Points on the Short-Run Aggregate Supply Curve, but to the Right

question 76

Multiple Choice

At points on the short-run aggregate supply curve, but to the right of the long-run aggregate supply curve, resources are:

• A)overutilized, making it more likely that the short-run aggregate supply curve will shift up (to the left).
• B)overutilized, making it more likely that the short-run aggregate supply curve will shift down (to the right).
• C)underutilized, making it more likely that the short-run aggregate supply curve will shift up (to the left).
• D)underutilized, making it more likely that the short-run aggregate supply curve will shift down (to the right).

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Definitions:

Depletion

An accounting method used to allocate the cost of extracting natural resources over their productive life.

Total Asset Turnover

A financial metric indicating how effectively a company uses its assets to generate sales.

Amortization

The method of slowly deducting the initial value of an asset over time.

Salvage Value

The appreciated remaining value of an asset as it reaches the end of its effective use period.