Which of the Following Can Partially Explain Long-Term Growth in Production

question 91

Multiple Choice

Which of the following can partially explain long-term growth in production?  

• A) increases in government spending 
• B) increases in availability of resources 
• C) reductions in federal taxes 
• D) a gradual but consistent increase in the price level

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Definitions:

Selling and Administrative Expenses

Costs related to selling products and managing the business, excluding production costs.

Multiple-Step Income Statement

An income statement that separates operating revenues and operating expenses from non-operating revenues, expenses, and other gains and losses.

Gross Profit

The difference between sales revenue and the cost of goods sold, representing the profitability of a company's core business activities.

Single-Step Statement

A simplified income statement format that sums all revenues and gains together and subtracts all expenses and losses in one step to arrive at net income.