When There Is a Shift the Aggregate Supply Curve Caused

question 41

Multiple Choice

When there is a shift the aggregate supply curve caused by factors external to a nation's economy, it is called

• A) a trade imbalance.
• B) government control.
• C) a supply shock.
• D) an economic anomaly.

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Definitions:

Utilization

The extent to which a resource, such as equipment or labor, is being used effectively, typically expressed as a percentage of total available capacity.

Efficiency

The ratio of the output generated to the input used, expressing the effectiveness of a system or process in utilizing resources.

Break Even

The point at which total revenues equal total costs, resulting in no profit or loss.

Variable Costs

Costs that change in direct proportion to the level of production or business activity.