Which of the Following Occurs as Macroeconomic Output Expands in the Short

question 68

Multiple Choice

Which of the following occurs as macroeconomic output expands in the short run?

• A)the nominal cost of labor increases
• B)the demand for nonlabor resources increases
• C)equipment wears out faster
• D)the nominal cost per unit of output rises
• E)All of the answers are correct

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Definitions:

Make-Or-Buy Decision

A decision-making process used by businesses to determine whether to produce goods in-house or purchase them from an external supplier.

Cost Recovery

The process of recouping the costs of an investment, expense, or other outlay of funds, often related to capital projects, taxes, or legal judgments.

Investment

The allocation of resources, usually money, into assets or projects expected to generate future profits or income.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with an organization's goal of maximizing owner value.