The Sacrifice Ratio Is Calculated by

question 56

Multiple Choice

The sacrifice ratio is calculated by

• A)dividing the number unemployed by the labour force.
• B)dividing the number employed by the labour force.
• C)dividing the cumulative loss of real GDP (as a percentage of potential GDP)due to disinflation by the number of percentage points by which inflation fell.
• D)dividing the cumulative loss of potential GDP (as a percentage of actual GDP)due to disinflation by the number of percentage points by which inflation fell.
• E)adding the cumulative loss of real GDP (as a percentage of potential GDP)due to disinflation to the number of percentage points by which unemployment exceeds the NAIRU.

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Definitions:

Control Account

An account used to summarize transactions recorded in subsidiary ledgers for a comprehensive total in the general ledger.

Predetermined Overhead Rate

A calculated rate used to estimate the manufacturing overhead cost per unit of production, based on expected costs and activity levels.

Manufacturing Overhead

Indirect factory-related costs that occur from manufacturing a product such as the cost of managing a factory.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against a fixed asset since it was put into use.