Practical Capacity Is Estimated Based on

question 42

Multiple Choice

Practical capacity is estimated based on

• A) Engineering studies and labor use patterns
• B) The behavior of fixed costs
• C) The behavior of variable costs
• D) Demand patterns

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Definitions:

Cost-Pull Inflation

Inflation caused by an increase in prices of inputs like labour, raw material, etc., leading to a decrease in the supply of these goods.

Demand-Pull Inflation

A sustained rise in the price level caused by a rightward shift of the aggregate demand curve.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Standard of Living

A level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a geographic area.