Which of the Following Would Cause the Short-Run Aggregate Supply

question 74

Multiple Choice

Which of the following would cause the short-run aggregate supply curve to shift leftward?

• A)a drop in energy prices
• B)a drop in the actual price level
• C)workers opting for more leisure time and less time on the job
• D)new investment spending that is greater than depreciation of the capital stock
• E)a technological breakthrough with widespread practical applications that occurs in the microcomputer industry

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Definitions:

Activity Rates

Predetermined rates used in activity-based costing to allocate costs to products or services based on their consumption of activities.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process or providing services, used in calculating production costs or rates.

Product-level Costs

Costs that can be directly attributed to a specific product, including materials and direct labor costs.

Units

Basic measures or quantities used to express a variable, item, or the extent of a service or product used in transactions.