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The figure given below depicts short-run equilibrium in an aggregate demand-aggregate supply model.If the economy is at point "e" in the short run,which of these policies adopted by the Fed is likely to return it to long-run equilibrium?
Figure 15.3
Direct Materials
The raw materials that can be directly attributed to the production of a product.
Manufacturing Overhead
All production costs other than direct materials and direct labor, including expenses such as maintenance, utilities, and depreciation on manufacturing facilities.
Capital Expenditure Budget
A budget for planning and controlling spending on long-term assets, including buildings, equipment, and technology, intended for future operations.
Long-Term Assets
Assets that are expected to provide economic benefits over a period longer than one year, such as buildings and equipment.
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