On an Aggregate Demand and Aggregate Supply Graph,the Great Depression

question 66

Multiple Choice

On an aggregate demand and aggregate supply graph,the Great Depression can be pictured as

• A)a leftward shift of the aggregate supply curve
• B)a rightward shift of the aggregate supply curve
• C)a leftward shift of the aggregate demand curve
• D)an increase in the price level caused by a movement along the aggregate demand curve
• E)a decrease in the price level caused by a movement along the aggregate supply curve

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Definitions:

Opportunity Cost

The cost of foregone alternatives, representing the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Conversion Costs

Expenses incurred in the process of converting raw materials into finished goods, including labor and manufacturing overhead.

Direct Materials

Materials that become an integral part of a finished product and whose costs can be conveniently traced to it.

Direct Labour

The labor costs directly attributable to the production of goods or services, typically including wages of workers who are physically involved in creation of the product.