An Increase in the Costs of Production Will Cause The

question 106

Multiple Choice

An increase in the costs of production will cause the:

• A) short-run aggregate supply curve to shift to the right.
• B) aggregate demand curve to shift to the right.
• C) short-run aggregate supply curve to shift to the left.
• D) long-run aggregate supply curve to shift to the left.

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Definitions:

Gross Sales

The total sales amount without any deductions for discounts or returns.

Indirect Expenses

Costs not directly linked to the production of goods or services, such as administrative and marketing expenses.

Subjective

Based on personal opinions, interpretations, points of view, or emotions rather than objective facts.

Cost of Goods Sold

The expenses directly related to the manufacturing of products sold by a business, including the costs associated with materials and labor.