The Short- Run Aggregate Supply Curve Shifts When

question 37

Multiple Choice

The short- run aggregate supply curve shifts when
I. the full- employment quantity of capital changes.
II. technology advances.

• A)I only
• B)II only
• C)Neither I nor II
• D)Both I and II

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Definitions:

Break-even Sales

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

Absorption Costing

is an accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.

Unit Product Cost

The total cost (including materials, labor, and overhead) to produce a single unit of a product.

Break-even Sales

The amount of revenue required to cover both the variable and fixed costs of a business, resulting in no profit and no loss.