Which of the Following Is True of the Short-Run Aggregate

question 132

Multiple Choice

Which of the following is true of the short-run aggregate supply curve?

• A)It shows the relation between the inflation rate and the quantity of aggregate output firms supply,other things constant.
• B)It shows the relation between the price of labor and the aggregate quantity of labor workers supply,other things constant.
• C)It shows the relation between the interest rate and the quantity of capital goods firms supply,other things constant.
• D)It shows the relation between the price level and the quantity of aggregate output firms supply,other things constant.
• E)It shows an inverse relationship between the price level and real GDP.

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Definitions:

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, reflecting how efficiently labor resources are used.

Skilled Workers

Individuals who possess specialized training, expertise, or significant experience in a particular field or job.

Hourly Rates

The cost or pay rate allocated per hour of labor or service provided.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost, used to assess cost control.