Keynes Was Concerned That at Macroeconomic Equilibrium in a Laissez

question 141

Multiple Choice

Keynes was concerned that at macroeconomic equilibrium in a laissez faire free market economy,full employment

• A)And price stability might not continue simultaneously.
• B)Would continue but price stability might not.
• C)Might not continue but price stability would.
• D)None of the choices are correct.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected overhead based on standard rates.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allotted for the actual production achieved, indicating the efficiency of utilizing variable resources.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at standard cost.

Favorable

A term used in variance analysis indicating that actual costs were lower than budgeted or standard costs, leading to higher profits.