In the Aggregate Demand/aggregate Supply Framework

question 11

Multiple Choice

In the aggregate demand/aggregate supply framework

• A) neither expansionary fiscal nor expansionary monetary policy has a permanent impact On the natural level of income and employment.
• B) only monetary policy has a long-run impact on income and unemployment under Flexible exchange rates.
• C) only fiscal policy has a long-run impact on income and employment under flexible Exchange rates.
• D) only monetary policy has a short-run impact on income and employment under fixed Exchange rates.

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Definitions:

Spending Variance

The difference between the budgeted or planned amount of expense and the actual amount spent.

Standard Costing System

A cost accounting system that assigns expected costs to products to help managers monitor and control actual costs.

Direct Materials

Raw materials that can be directly traced to the production of a specific product.

Actual Price

The real or final price at which a transaction is completed, as opposed to an estimated or listed price.