(Figure: Determining SRAS Shifts 2) Which of the Following

question 39

Multiple Choice

(Figure: Determining SRAS Shifts 2) Which of the following might cause a change in short-run aggregate supply?

• A) Unions successfully negotiate higher wages.
• B) Businesses are increasingly optimistic about the future.
• C) Consumer incomes decrease.
• D) Taxes on businesses increase.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, which can impact the cost of goods sold.

Material J

Material J refers to a specific category or type of raw material or input identified with the letter "J" used in manufacturing or production processes.

Direct Materials Quantity Variance

The difference between the budgeted amount of materials needed for production and the actual amount used, valuated at the standard cost.

Labor Rate Variance

The difference between the actual labor costs incurred and the expected or standard labor costs for the production volume achieved.