Suppose the Economy Is Initially in Long-Run Equilibrium and Then

question 17

Multiple Choice

Suppose the economy is initially in long-run equilibrium and then it experiences a supply shock in the form of sharply higher energy prices.Which of the following is true?

• A)The short-run aggregate supply curve shifts leftward and the long-run supply curve shifts rightward.
• B)The short-run aggregate supply curve shifts rightward and the long-run supply curve shifts rightward.
• C)The short-run aggregate supply curve does not shift and the long-run aggregate supply curve shifts rightward.
• D)The short-run aggregate supply curve shifts rightward but the long-run aggregate supply curve does not shift.
• E)There will be a movement to the left along the aggregate demand curve.

Recognize the criteria for the recognition of intangible assets in financial statements.

Differentiate between research and development costs in accounting for intangible assets.

Understand the concept and measurement of fair value according to AASB 13.

Identify the key characteristics of intangible assets.

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Definitions:

Total Costs

The total expense of manufacturing that encompasses all constant and fluctuating costs.

Average Variable Cost

The cost of labor and materials divided by the quantity of output, representing the variable cost per unit of production.

Total Variable Cost

The sum of all costs that vary with output level, including costs such as labor and raw materials.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity of output produced.