A Sustained Rise in the General Price Level of Goods

question 28

Multiple Choice

A sustained rise in the general price level of goods and services is called

• A) a Keynesian economy.
• B) "hidden unemployment."
• C) inflation.
• D) a depression.
• E) a recession.

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Definitions:

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or the provision of services.

Finished Goods Inventory

The stock of completed products ready for sale at the end of an accounting period.

Raw Materials

Raw materials are the basic materials from which products are manufactured or made, often used in the initial stages of the production process.

Factory Overhead

Every manufacturing-related expense, apart from direct labor and materials.