What Does the Long-Run Aggregate Supply Relationship Refer To

question 120

Multiple Choice

What does the long-run aggregate supply relationship refer to?

• A)a time period long enough for the prices of both outputs and inputs to adjust to changes in the economy
• B)a time period in which input prices can change, but output prices have not had time to adjust
• C)a time period in which output prices can change but input prices have not had time to adjust
• D)any time period of more than a year

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Definitions:

Direct Labor-Hours

measures the total amount of time that labor directly involved in manufacturing or producing goods works, often used in costing and budgeting.

Unit-Level Activities

Activities that are performed each time a unit is produced.

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Internal Decision-Making

The process within an organization to choose among alternatives and make choices that impact its internal operations and strategy.