A Decrease in the Price of Resources Will Cause the Aggregate

question 209

Multiple Choice

A decrease in the price of resources will cause the aggregate supply curve to

• A)shift outward.
• B)shift inward.
• C)become flatter.
• D)become steeper.

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Definitions:

Utilities Expense

An expense incurred by a business for basic utilities, such as electricity, gas, and water, which are necessary for operations.

Fees Earned

Revenue generated from providing services.

Prepaid Insurance

Insurance costs paid for in advance, recorded as a current asset until the period the insurance coverage relates to passes.

Insurance Expense

The cost recognized in accounting for premiums paid on insurance policies.