If Actual Output Exceeds Potential Output, ________ Shifts Upward Over

question 21

Multiple Choice

If actual output exceeds potential output, ________ shifts upward over time.

• A) the short-run AS curve
• B) the short-run AD curve
• C) the long-run AS curve
• D) the long-run AD curve

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Definitions:

External Sales Price

The price at which goods or services are sold to customers outside of the producing company.

Variable Manufacturing Cost

Costs associated with manufacturing that vary directly with the level of production, such as materials and labor.

Shipping Costs

Expenses associated with the transportation of goods from one location to another.

Transfer Price

The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.