An Increase in Labor Productivity Shifts the

question 100

Multiple Choice

An increase in labor productivity shifts the

• A) AD curve rightward.
• B) AD curve leftward.
• C) short-run aggregate supply (SRAS)curve leftward.
• D) SRAS curve rightward.
• E) none of the above

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Definitions:

Materials

The physical components used in the production of goods, including both raw inputs and manufactured parts.

Processing Department

A section of a manufacturing facility where a specific type of processing or assembly operation is performed on products.

Ending Inventory

Ending Inventory refers to the total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.

Conversion Costs

The sum of labor and overhead costs incurred to convert raw materials into finished goods.