Other Things Equal, the Short-Run Aggregate Supply Curve Shifts Positions

question 50

Multiple Choice

Other things equal, the short-run aggregate supply curve shifts positions when:

• A)the price level changes.
• B)the rate of inflation changes.
• C)input prices change.
• D)aggregate demand changes.

---

Definitions:

Operating Income

Refers to the profit realized from a business's core operating activities, excluding deductions of interest and taxes.

Absorption Costing

Absorption costing is an accounting method that includes all manufacturing costs (both variable and fixed) in the cost of a product.

Variable Costing

Variable costing is an accounting method that only considers variable costs (costs that change with production levels) in the calculation of product or service costs, excluding fixed costs.

Gross Profit

The difference between sales revenue and the cost of goods sold, directly indicating the efficiency of core business activities.