FIGURE 23-2 -Refer to Figure 23-2.The Shift from to Shown

question 54

Multiple Choice

FIGURE 23-2
-Refer to Figure 23-2.The shift from to shown in the diagram is referred to as a(n)

• A)increase in aggregate supply.
• B)increase in unit costs.
• C)negative aggregate supply shock.
• D)positive aggregate supply shock.
• E)decrease in unit costs.

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Definitions:

Variable Manufacturing Costs

These are costs that vary directly with the level of production output, including expenses like raw materials and variable labor costs.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production output and include expenses such as rent, property taxes, and salaries for permanent staff.

Selling Price

The amount a buyer pays to acquire a product or service from a seller.

Net Income

The amount of earnings remaining after all operational, interest, and tax expenses have been deducted from total revenue, reflecting the financial health of a company.