Given the Aggregate Demand Curve,an Increase in the Supply of a Productive

question 32

Multiple Choice

Given the aggregate demand curve,an increase in the supply of a productive resource will:

• A)increase output but leave prices unchanged.
• B)decrease both output and prices.
• C)increase the price level and decrease output.
• D)decrease the price level and increase output.
• E)increase the price level but leave output unchanged.

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Definitions:

CVP Analysis

Cost-Volume-Profit Analysis, an accounting tool used to determine how changes in costs and volume affect a company's operating income and net income.

Variable

In finance and economics, a variable represents a quantity or factor that can change and influence outcomes, such as price, interest rates, or investments.

Fixed

Pertaining to assets, costs, or charges that do not vary with the level of production or sales in the short term.

Cost Behavior Analysis

The study of how specific costs change in relation to changes in an organization's activity level.