Kilroy Manufacturing Prepared a 2012 Budget for 40,000 Units of Product.Actual

question 38

Multiple Choice

Kilroy Manufacturing prepared a 2012 budget for 40,000 units of product.Actual production in 2012 was 41,000 units.Which one of the following is the most useful comparison for this company?

• A)The actual results for 41,000 units with a new budget for 41,000 units
• B)The actual results for 41,000 units with the original budget for 40,000 units
• C)The actual results for 41,000 units with the previous year's actual results for 44,000 units
• D)It doesn't matter.All of these choices are equally useful.

---

Definitions:

Unemployment

A situation where individuals who are capable of working and are seeking work are unable to find employment.

Natural Rate of Unemployment

The level of unemployment that exists when the labor market is in equilibrium, including frictional and structural unemployment but not cyclical unemployment.

Long-run Phillips Curve

A graphical representation indicating that in the long-term, there is no trade-off between inflation and unemployment, implying that the curve is vertical.

Phillips Curve

A theory suggesting an inverse relationship between the rate of inflation and the unemployment rate in an economy over the short run.