The Figure Below Shows the Aggregate Demand and Supply Curves

question 105

Multiple Choice

The figure below shows the aggregate demand and supply curves for the U.S.A rightward shift of the aggregate supply curve from AS to AS' would be caused by:​ ​
Figure 5.4
​

• A)an increase in resource prices,improved technology,or an extension of patent protection.
• B)a decrease in resource prices,improved technology,or an extension of patent protection.
• C)a decrease in resource prices,improved technology,or a shortening of patent protection.
• D)an appreciation of the dollar,higher inflation in Europe,or a decrease in resource prices.
• E)a depreciation of the dollar,higher inflation in Asia,or improved technology.

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Definitions:

Production Areas

Specific sections within a manufacturing or production facility where goods are made or assembled.

Single Plantwide Rate

An overhead absorption rate that applies the same overhead costs to all products or services regardless of the actual overhead each consumes.

Multiple Production Department Rates

The use of different overhead application rates for various departments within a manufacturing facility to more accurately assign costs.

Activity-Based Costing

A costing method that assigns costs to products and services based on the resources they consume.