The Long-Run Equilibrium Level of RGDP Only Changes When the LRAS

question 131

True/False

The long-run equilibrium level of RGDP only changes when the LRAS shifts.

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Definitions:

Fixed Manufacturing Overhead

The set of manufacturing costs that do not vary with the level of production, such as salaries of factory supervisors and rent of the manufacturing facility.

Manufacturing Overhead Budget

A plan that outlines the expected manufacturing overhead costs for a period, helping businesses control and allocate expenses effectively.

Direct Labor-Hour

A measure of the labor time directly involved in producing goods, often used to allocate labor costs to products.

Variable Manufacturing Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and indirect materials.