Which of the Following Shifts Both the Short-Run and the Long-Run

question 14

Multiple Choice

Which of the following shifts both the short-run and the long-run aggregate supply right?

• A) an increase in the natural rate of unemployment
• B) an increase in the expected price level
• C) an increase in the capital stock
• D) an increase in money supply

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Definitions:

Standard Costs

Costs that are predetermined on a per-unit basis. Standard costs are used as a benchmark for evaluating performance. These costs are often used in or are the output from the budgeting process.

Efficiency Losses

Reductions in economic well-being, reflected by the inability of a market to allocate resources optimally.

Standard Costs

The predetermined expenses for the production of a product or operation of a service, used as a baseline to measure performance.

Direct Labor Wage Variance

The difference between the expected cost of direct labor for production and the actual cost incurred.