A Movement Along the Aggregate Production Function Is the Result

question 95

Multiple Choice

A movement along the aggregate production function is the result of a change in

• A)capital.
• B)technology.
• C)the quantity of labour.
• D)the interest rate.
• E)the inflation rate.

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Definitions:

EAC

Equivalent Annual Cost, a method used to compare the cost effectiveness of different investments or projects with uneven lifespans.

CCA Class

Refers to the Canada Revenue Agency's categorization of depreciable properties for the purpose of determining their depreciation rate for tax purposes.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows, reflecting the time value of money and risk.

NPV

Net Present Value: a capital budgeting technique that assesses the profitability of a proposed investment or project.