A Technological Advance ________ Potential GDP,________ Aggregate Supply,and Shifts the Aggregate

question 292

Multiple Choice

A technological advance ________ potential GDP,________ aggregate supply,and shifts the aggregate supply curve ________.

• A)increases;increases;leftward
• B)decreases;decreases;leftward
• C)increases;increases;rightward
• D)decreases;increases;rightward
• E)increases;decreases;leftward

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Definitions:

Contribution Margin

is the amount of revenue left after deducting variable costs, which can be used to cover fixed costs and contribute to profits.

Variable Cost Per Unit

The cost that changes with the level of output or sales, calculated on a per-unit basis.

Planning Horizons

The timeframe over which strategic planning and decision-making processes are projected and analyzed, ranging from short to long term.

Relevant Range

The span of activity levels within which certain cost assumptions and behaviors are considered valid and accurate for management decisions.