Which of the Following Would Shift the Long-Run Aggregate Supply

question 33

Multiple Choice

Which of the following would shift the long-run aggregate supply curve to the left?  

• A) an increase in the size of the labour force 
• B) a reduction in the quality of the labour force 
• C) a reduction in the cost of using computers 
• D) a decrease in the price level

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Definitions:

Variable Costing

An accounting method that only allocates variable costs to inventory, treating fixed costs as period expenses that are charged to the income statement in the period they are incurred.

Absorption Costing

A method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overheads - in the cost of a unit of product.

Contribution Format

A financial statement layout that separates fixed costs from variable costs to highlight the contribution margin of a business.

Absorption Costing

A financial tracking method that brings together all costs of production—direct materials, direct labor, and all overhead, both variable and fixed—inclusion in the price of a product.