The Long-Run Aggregate Supply Will Increase When

question 68

Multiple Choice

The long-run aggregate supply will increase when

• A)labour supply decreases.
• B)increased labour productivity.
• C)the price level increases.
• D)taxes increase.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including costs related to factory equipment maintenance, factory management salaries, and utilities.

Period Cost

Expenses that are not directly tied to the production process and are charged to the period in which they occur, such as selling and administrative expenses.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and are significant in cost.

Workman's Compensation

Insurance that provides wage replacement and medical benefits to employees injured in the course of employment.