More Flexible Labor Markets Will Shift

question 78

Multiple Choice

More flexible labor markets will shift

• A)both the long-run Phillips curve and the long-run aggregate supply curve to the right.
• B)both the long-run Phillips curve and the long-run aggregate supply curve to the left.
• C)the long-run Phillips curve to the right and the long-run aggregate supply curve to the left.
• D)the long-run Phillips curve to the left and the long-run aggregate supply curve to the right.

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Definitions:

Full (Absorption) Cost

The total cost of a product that includes all direct and indirect costs, such as raw materials, labor, and overhead, required for its production.

Transfer Price

The price charged for goods or services transferred between divisions or units of the same company.

Additional Parts

Extra components or pieces supplied beyond the original requirements, often used for repairs, replacements, or enhancements.

Idle Capacity

The available production capacity that is not being used, often indicating inefficiency or unmet demand.