Aggregate Supply Increases When

question 78

Multiple Choice

Aggregate supply increases when:

• A)wage rates decrease while the economy's price level remains unchanged.
• B)resource availability is reduced.
• C)there are fewer workers.
• D)there is less capital and the price level remains unchanged.
• E)there are increased inflationary expectations of labor.

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Definitions:

Investment Centers

Business units or departments that are directly responsible for generating returns on assets allocated to them.

Controllable Margin

The portion of profit or margin that can be directly influenced by managing costs or expenses within a department or area.

Average Operating Assets

The average value of the assets used in the operation of a business, taken over a specific period, which may be used to evaluate the effectiveness of asset use in generating revenue.

Return on Investment

A measure of the profitability of an investment, calculated by dividing the net profit by the initial cost of the investment.