Figure 16-7 
-Refer to Figure 16-7. Over time, the aggregate supply curve shifts from SRAS1 to SRAS2
Because of
Definitions:
Loss
The negative result from operations or other transactions when costs and expenses exceed revenues.
Unit Product Cost
The total cost (including materials, labor, and overhead) to produce a single unit of product.
Absorption Costing
An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a product.
Total Contribution Margin
The difference between total sales revenue and total variable costs.
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