Which Action Will Tend to Decrease Aggregate Supply, According to Supply-Side

question 160

Multiple Choice

Which action will tend to decrease aggregate supply, according to supply-side economists?

• A) a decrease in government spending
• B) an increase in the stock of capital
• C) a decrease in the money supply
• D) an increase in marginal tax rates

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Definitions:

Facility Level Activities

Operations and tasks that support the entire organization and are not tied to a specific product or service.

Facility-level Costs

Refers to the expenses incurred by a facility or plant that are not directly tied to specific products or departments but are necessary for the overall operation.

Batch-level Costs

Expenses that are incurred every time a batch of goods is produced, relating to tasks like setup and inspection.

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the amount of resources they use.