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If, for country A, the present value of all projected future revenues is $400 million and the present value of all projected future spending is $412 million, then country A's fiscal policy is sustainable.
Fixed Cost Per Unit
The total fixed costs divided by the number of units produced, indicating how much each unit needs to contribute to fixed costs.
Level of Activity
A measure of the volume of production, operation, or work undertaken by a business or facility within a particular time period.
Unit Variable Cost
A cost that varies directly with the production volume, including materials and labor directly involved in production.
Units of Activity
A depreciation method that allocates an asset's cost based on its usage, activities, or units produced, rather than the passage of time.
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