Which of the Following Would Cause an Increase in Long-Run

question 49

Multiple Choice

Which of the following would cause an increase in long-run aggregate supply?

• A) An inflow of migrant workers in the economy.
• B) A fall in the capital stock of an economy.
• C) A decline in labour productivity in the economy.
• D) A falling birth rate.

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Definitions:

Raw Materials Inventory

Refers to the total cost of all the materials that are not yet processed and used in production, stored in a warehouse or inventory.

Gallons

A unit of volume for liquid measures, used primarily in the United States, equal to four quarts or approximately 3.785 liters.

Standard Costs

Predicted costs for performing a task under normal conditions, used for budgeting and measuring performance.

Work in Process

Inventory consisting of items that are in the production process but are not yet completed, indicating partially finished goods.