In the Long Run, If the Prices of Goods and Services

question 60

Multiple Choice

In the long run, if the prices of goods and services paid by consumers increase the long-run aggregate:

• A) supply will increase.
• B) supply will decrease.
• C) supply will stay the same.
• D) demand will increase.

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Definitions:

Overhead Variances

Differences between the actual overhead costs incurred and the overhead costs that were budgeted or expected.

Fixed

A financial term referring to costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable

Refers to a quantity that can change or vary over time or based on certain conditions.

Period

A duration of time identified for specific accounting or financial reporting purposes.