A Leftward Shift in the Short Run Aggregate Supply Curve

question 203

Multiple Choice

A leftward shift in the short run aggregate supply curve

• A) is the result of the Fed increasing the quantity of money.
• B) is the result of a rise in the price of a key resource.
• C) is the result of consumer expenditures exceeding available output.
• D) increases both the price level and real GDP.

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Definitions:

Direct Labour

Direct labour relates to the employees or workers directly involved in the production of goods or services, whose wages are considered a direct cost of production.

Overhead Budget

A financial plan that estimates the expected overhead costs for a business over a certain period.

Indirect Materials

Materials used in the production process that cannot be directly linked to specific products or are not significant enough to warrant tracing to individual products, such as lubricants for machinery.

Indirect Labour

Labor costs associated with employees who support the production process but do not directly work on the production of goods or services, such as maintenance staff and supervisors.