Economists Predict the Business Cycle Well Enough That Stabilization Policy

question 153

True/False

Economists predict the business cycle well enough that stabilization policy is likely to work despite lags in the effects of policy.

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Definitions:

Actual Direct Labour Rate

The real wage rate paid for the hours that direct laborers work, differing from initially estimated or standard rates.

Standard Direct Labour Rate

The pre-established amount paid per unit of work or hour of labor to employees directly involved in manufacturing.

Materials Price Variance

A financial metric measuring the deviation between the budgeted or standard cost of materials and the actual cost incurred.

Variable Manufacturing Overhead Cost Incurred

The total variable costs that have been spent during a particular period for activities related to manufacturing overhead.