Refer to the Figure Below

question 24

Multiple Choice

Refer to the figure below.Long-run equilibrium in this economy:

• A)will be impossible to achieve.
• B)could occur if AD shifts upward to the right.
• C)could occur if AS shifts upward and to the left.
• D)will occur only if AD shifts downward to the left.

---

Definitions:

Direct Labor-Hours

A measure of the total time workers spend directly manufacturing a product or performing a service.

Direct Labor Rate

The average cost per hour for labor directly involved in the production of goods or services.

Direct Labor Budget

A forecast of the labor costs directly associated with production, factoring in anticipated hourly rates and hours needed.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a base for allocating overheads.