Economic Growth Takes Place

question 7

Multiple Choice

Economic growth takes place

• A)only when both aggregate demand and aggregate supply increase.
• B)when aggregate supply increases.
• C)when aggregate demand increases.
• D)only if the price level is constant or rising.

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Definitions:

Units-Of-Production Depreciation

A method of depreciation based on an asset's usage, activity, or units of production rather than the passage of time.

Salary

Regular payments made to employees, typically on a monthly basis, for their professional services.

Direct Labor

The wages paid to workers who are directly involved in the production or manufacture of goods or services.

Direct Materials

Raw materials that can be directly attributed to the production of finished goods.