Increases in Productivity Will

question 89

Multiple Choice

Increases in productivity will

• A) cause the price level to rise.
• B) impact short-run aggregate supply but not long-run aggregate supply.
• C) impact aggregate demand but not aggregate supply.
• D) increase long-run aggregate supply.
• E) increase the price level and aggregate supply.

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Definitions:

Activity-Based Costing

A cost assignment approach that finds activities in an entity and assigns each activity's expenses to all goods and services based on actual use.

Customer Service

The support and assistance provided by a company to people who buy or use its products or services.

Time-Driven

A model or approach that bases analysis, costing, or scheduling on the amount of time required to perform tasks.

Activity-Based Costing

A technique for allocating costs to products or services based on the resources they consume.