Figure 17-9 -Refer to Figure 17-9.A(n)________ Would Be Depicted as a Movement

question 83

Multiple Choice

Figure 17-9
-Refer to Figure 17-9.A(n) ________ would be depicted as a movement from A to D to C.

• A)supply shock,such as rising oil prices
• B)increase in aggregate demand
• C)implementation of contractionary monetary policy
• D)increase in short-run aggregate supply

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Definitions:

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Variable Costs

Costs that change in proportion to the level of goods or services a company produces.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not affect future economic decisions.

Average Fixed Cost

Is the fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.