-In the Above Figure, B Is the Current Long-Run Aggregate

question 357

Multiple Choice

-In the above figure, B is the current long-run aggregate supply curve and E is the current short-run aggregate supply curve. Technological advances mean the long-run aggregate supply curve and short-run aggregate supply curve

• A) remain B and E.
• B) shift to A and D, respectively.
• C) shift to C and F, respectively.
• D) shift to C and remain E, respectively.

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Definitions:

Direct Materials

Materials directly linked to the production of a certain product and incorporated into its cost.

Predetermined Overhead

An estimated rate used to allocate overhead costs to products or services based on expected activities and costs.

Direct Materials

Materials that can be directly linked to the production process and form a fundamental component of the final product.

Direct Labor-Hours

The cumulative hours that employees actively participating in manufacturing processes have worked.