An Increase in the Expected Future Price of Inputs Will

question 125

Multiple Choice

An increase in the expected future price of inputs will cause:

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

---

Definitions:

Actual Output

The tangible products or results produced by a company's operations or activities.

Total Overhead Variance

The difference between total actual and applied overhead.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process, often used to allocate labor costs to products.

Quantity Variances

The difference between the expected and actual number of units used or produced, which can affect costing and budgeting assessments.