If Output Is Rising and Unemployment Is Falling, the Economy

question 199

Multiple Choice

If output is rising and unemployment is falling, the economy must be in a(n)

• A) contraction.
• B) expansion.
• C) depression.
• D) hyperinflationary period.

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Definitions:

Direct Labour

Labor costs that are specifically traceable to the production of goods or provision of services.

Raw Materials

The basic materials and components required at the start of the production process to manufacture goods.

Total Manufacturing Costs

The sum of all costs associated with producing a product, including direct materials, direct labor, and manufacturing overhead.

Period Cost

Costs that are expensed in the period in which they are incurred, not directly tied to the production process.