The Study of the Short Run in Macroeconomics Focuses

question 46

Multiple Choice

The study of the short run in macroeconomics focuses

• A)equally on potential GDP and actual GDP.
• B)primarily on changes to potential GDP.
• C)primarily on changes to the output gap with less emphasis on changes to potential GDP.
• D)primarily on changes to potential GDP with less emphasis on changes in actual GDP.
• E)primarily on changes to actual GDP with no interest in the output gap.

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Definitions:

Direct Labor-Hours

The total number of hours worked by employees directly involved in the manufacturing process.

Direct Materials Cost

The cost of raw materials that can be directly attributed to the production of a finished good.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific products or activities based on their consumption of resources.

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods.