If the Price Level Kept Increasing,the Short-Run Aggregate Supply Curve

question 86

Multiple Choice

If the price level kept increasing,the short-run aggregate supply curve would get steeper because

• A)all the unemployed would eventually be hired.
• B)there are limits to how long workers can work long hours and capital can go without proper maintenance.
• C)the rate at which capacity can be expanded increases indefinitely.
• D)the long-run aggregate supply curve is horizontal.

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Definitions:

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the activities and resources that go into their production or provision, aiming for more accurate cost allocation.

Batch Setup

The process of preparing machines and equipment for a specific batch of production, including adjustments and calibrations.

Activity Cost Pool

A way to aggregate all costs associated with a particular business activity, facilitating more accurate allocation of overheads to products or services.

Activity-Based Costing

An accounting method that assigns costs to products and services based on the activities they require, aiming for more precise cost allocation.