The SAS Curve and the LAS Curve

question 106

Multiple Choice

The SAS curve and the LAS curve

• A)intersect at potential GDP.
• B)are perpendicular to one another at potential GDP.
• C)are parallel at potential GDP.
• D)None of the above answers is correct.

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Definitions:

Cost Of Goods Sold

The direct financial outlays for labor and materials that are necessary for producing goods a company sells.

Accounting Period

A specific time span for which financial records are kept and financial statements are prepared, usually a year or quarter.

Beginning Inventory

The value of all the goods held by a company at the start of an accounting period, before any purchases or sales are made.