An Autonomous Increase in S from a Condition of Equilibrium

question 12

Multiple Choice

An autonomous increase in S from a condition of equilibrium in national income and in the trade balance results in the nation's income:

• A)rising and its trade balance turning into surplus
• B)falling and its trade balance turning into surplus
• C)falling and its trade balance turning into deficit
• D)rising and its trade balance turning into deficit

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Definitions:

Job M598

A specific task or project identified by code M598 within a job costing system, where costs are tracked individually.

Markup

The extra charge added onto the purchase price of products to account for operational costs and generate profit.

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate manufacturing overhead to products based on a specific activity base.

Fixed Manufacturing Overhead

The static costs associated with manufacturing a product, which do not change with the volume of production, such as rent and salaries.