Which of the Following Will Most Likely Cause an Increase

question 77

Multiple Choice

Which of the following will most likely cause an increase in the aggregate supply curve?

• A) a reduction in the general level of prices
• B) an increase in the general level of prices
• C) an improvement in technology that substantially reduces the cost of generating energy
• D) an increase in taxes that makes it more expensive for Americans to import crude oil

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Definitions:

Fixed Manufacturing Overhead

is the sum of all the production costs that do not change with the level of output, including costs like factory rent, salaries of permanent employees, and depreciation of factory equipment.

Direct Labour

Labor of employees engaged directly in the manufacturing process or production work, essential for creating the product.

Operating Leverage

Operating leverage is a measure of how revenue growth translates into growth in operating income, indicating the degree to which a company can increase profitability through its fixed costs structure.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.