The Aggregate Supply Curve Would Shift Downward If

question 62

Multiple Choice

The aggregate supply curve would shift downward if

• A) unit costs increase due to an increase in output
• B) the wage rate increases
• C) good weather increases crop yields
• D) an increase in real GDP causes the price level to decrease
• E) an oil embargo causes world oil prices to rise

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Definitions:

Actual Results

The real, measured outcomes of business activities, such as sales or production levels, compared to planned or forecasted results.

Standard Cost

A predetermined cost of manufacturing, selling, or any other business activity, used as a benchmark for measuring performance.

Labor Rate Variance

The difference between the actual labor cost incurred and the labor cost that was expected or budgeted, typically due to wage rate differences.

Labor Standards

Benchmarks for the amount of labor time required to perform specific tasks, used for budgeting, scheduling, and performance evaluation.