The Effect of an Increase in Aggregate Supply Is A(n)

question 48

Multiple Choice

The effect of an increase in aggregate supply is a(n) :

• A) increase in the general level of prices and a decrease in real output.
• B) increase in the general level of prices and an increase in real output.
• C) decrease in the general level of prices and a decrease in real output.
• D) decrease in the general level of prices and an increase in real output.

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Definitions:

Automated Shaper

A machine tool that operates under programmed control to shape materials.

Capacity

The maximum level of output that a company can sustain to make a product or provide a service.

Job-Order Costing

A cost accounting system that calculates the cost of individual jobs or orders, commonly used in custom manufacturing.

Automated Shaper

A machine that uses computer controls to cut and shape materials with precision, often used in manufacturing for consistent and efficient production.