If the Bank of Canada Validates a Positive AD Shock

question 83

Multiple Choice

If the Bank of Canada validates a positive AD shock,

• A)it will have eliminated the possibility of a continued inflation.
• B)there is the risk of continued inflation.
• C)wages will fall to reduce the resulting unemployment.
• D)output will fall more rapidly than if the shock had not been validated.
• E)the AD curve will shift to the left and inflation will stop.

Calculate the total manufacturing overhead for a production department based on estimated costs.

Understand the impact of machine hours vs. direct labor hours as allocation bases for overhead rates.

Compute the unit product cost of a job.

Calculate the amount of overhead applied to a job in a specific department.

---

Definitions:

FICA - Social Security

A U.S. federal program funded by payroll taxes under the Federal Insurance Contributions Act (FICA) aimed at providing retirement, disability, and survivors' benefits.

Withheld

Referring to the portion of an employee's wages not paid directly to the employee but instead held back, often for tax purposes.

Matched by Employer

Refers to contributions that an employer makes to an employee's retirement plan, equal to the amount the employee contributes up to a certain percentage.

Installment Note

A loan that requires regular payments, or installments, over a set period of time, until the principal and interest are paid in full.