Which of the Following Would Shift Both the Short-Run Aggregate

question 24

Multiple Choice

Which of the following would shift both the short-run aggregate supply curve and the long-run aggregate supply curve leftward?

• A)Decreases in the prices of the factors of production that reflect permanent changes in their supplies
• B)Increases in the prices of the factors of production that do not reflect permanent changes in their supplies
• C)Decreases in the prices of the factors of production that do not reflect permanent changes in their supplies
• D)Increases in the prices of the factors of production that reflect permanent changes in their supplies
• E)Decreases in the aggregate price level

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable production costs have been deducted, indicating how much contributes toward covering fixed costs and generating profit.

Contribution Format

A contribution format income statement categorizes costs as variable or fixed and calculates a contribution margin.

Net Operating Income

Profits from a company's core business operations, excluding deductions of interest and taxes.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to the net profit or loss for that period.