Which of the Following Will Most Likely Occur in the United

question 124

Multiple Choice

Which of the following will most likely occur in the United States as the result of an unexpected rapid growth in real income in Canada and Mexico?

• A) an increase in aggregate demand and output in the short run
• B) an reduction in aggregate demand and output in the short run
• C) a reduction in the price level
• D) a decrease in the natural rate of unemployment in the United States

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Definitions:

Standard Quantity Of Hours

The set amount of labor hours estimated to be necessary for completing a task or producing a given amount of goods.

Direct Materials

Raw materials that are directly used in the production of goods, easily traceable to the finished product.

Materials Quantity Variance

The difference between the expected quantity of materials needed for production and the actual quantity used, valued at standard cost.

Labour Rate Variance

The difference between the actual cost of labor and the expected (standard) cost, indicating efficiency in labor utilization.