Which of the Following Is NOT Part of the Short-

question 89

Multiple Choice

Which of the following is NOT part of the short- run macroeconomic adjustment to equilibrium when the price level is greater than the equilibrium price level?

• A) There is a decrease in the money wage rate.
• B) There are decreases in production and prices.
• C) The quantity of real GDP demanded is less than the quantity of real GDP supplied.
• D) There are unexpected increases in business inventories.

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Definitions:

Predetermined Overhead Rate

The rate used to allocate manufacturing overhead to individual products or job orders, calculated before the period begins based on estimated costs and activity levels.

Electrical Motor

A device that converts electrical energy into mechanical energy, typically used to power machines or vehicles.

Overhead

The ongoing expenses of operating a business that are not directly associated with the production of goods or services.

Fixed Manufacturing Overhead

Costs that remain constant regardless of the level of production, related specifically to the manufacturing process, such as rent, utilities, and salaries of permanent staff.