In the Macroeconomic Short Run

question 78

Multiple Choice

In the macroeconomic short run,

• A)actual real GDP always equals potential GDP.
• B)actual real GDP may be less than or more than potential GDP.
• C)by definition, the economy is always moving away from full employment.
• D)the unemployment rate is zero.

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Definitions:

Direct Labor-hours

The total hours of labor directly involved in the manufacturing process of a product.

Labor Rate Variance

It is the difference between the actual cost of labor and the budgeted or expected cost of labor.

Standard Cost System

A standard cost system is a method of cost accounting that uses estimated costs for materials, labor, and overheads to compare against actual costs incurred, facilitating variance analysis and budgeting.

Actual Results

The real outcomes or data achieved at the end of a specified period, measured against planned or forecasted figures.