If the AD Curve Intersects the Short-Run Aggregate Supply Curve

question 4

Multiple Choice

If the AD curve intersects the short-run aggregate supply curve to the left of the long-run aggregate supply curve, under flexible exchange rates, then the long-run equilibrium position

• A) can be attained if labor adjusts its wages downward due to prices being lower than Expected.
• B) can be attained by a decrease in government spending.
• C) can be attained by contracting the money supply.
• D) cannot be attained without a change in technology.

Understand the significance of each measure of variability in data analysis.

Associate the appropriateness of different variability measures with different types of data.

Understand the mathematical representations and formulas associated with measures of variability.

Distinguish between various types of variability measures in terms of ease of calculation and information they provide.

---

Definitions:

Standard Costs

Predetermined costs for manufacturing a product or providing a service, used as benchmarks to measure performance.

Materials Price Variance

The difference between the actual cost of materials and the expected cost at standard prices.

Variable Overhead

Refers to the costs of production that fluctuate with the level of output, such as utilities and materials, that do not have a fixed price associated with production levels.

Direct Labor-hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating costs to products.