The Development of a New Cost-Saving Technology Would Increase

question 24

Multiple Choice

The development of a new cost-saving technology would increase

• A) autonomous consumption spending and,thus,shift the ADI curve to the right.
• B) autonomous consumption spending and,thus,shift the ADI curve to the left.
• C) autonomous investment spending and,thus,shift the ADI curve to the right.
• D) autonomous investment spending and,thus,shift the ADI curve to the left.
• E) net exports and government purchases and,thus,shift the ADI curve to the right.

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Definitions:

Materials

The raw substances used in the manufacturing process to create products or are part of the final product.

Direct Labor

The wages and benefits paid to employees who are directly involved in the production of goods or services.

Overhead Costs

Indirect costs or expenses related to the operation of a business that are not directly tied to a specific product or service, such as utilities, rent, and administrative expenses.

Work in Process

Work in process (WIP) refers to the materials and labor that are in the process of being manufactured but are not yet completed goods.