Long-Run Aggregate Supply Will Increase for All of the Following

question 23

Multiple Choice

Long-run aggregate supply will increase for all of the following reasons except

• A)a fall in the money wage rate.
• B)an increase in human capital.
• C)the introduction of new technology.
• D)an increase in the full-employment quantity of labour.
• E)an increase in the quantity of capital.

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Definitions:

Variable Overhead

The overhead costs that fluctuate with the level of production or business activity, such as utilities or materials consumed in production.

Direct Materials Purchases Variance

The difference between the actual costs of direct materials purchased and the expected (or standard) costs, impacting the budget and potentially financial results.

Variable Overhead Efficiency Variance

A measure used in management accounting to assess the efficiency of variable production overhead based on the actual time taken to produce goods versus the expected time.

Standard Direct Labor-Hours

Standard direct labor-hours refer to the estimated hours of direct labor work required to produce one unit of a product or service, used for budgeting and variance analysis.