Which of the Following Would Be Expected to Cause a Sustained

question 63

Multiple Choice

Which of the following would be expected to cause a sustained increase in the inflation rate rather than a once- and- for- all increase in the price level?

• A)a new payroll tax that raises unit wage costs
• B)an early frost that damages the agricultural harvest
• C)the sudden doubling of a key raw materials price
• D)expectations of higher future inflation
• E)the imposition of a new sales tax

Comprehend the calculation and implications of various types of variances.

Analyze the reasons behind labor efficiency variances.

Evaluate the role of effort in efficiency and its impact on variance reports.

Understand the relationship between fiscal policy actions and their impact on the budget balance, national debt, and economic outcomes.