Which of the Following Is Not Seen by Economists as an Underlying

question 39

Multiple Choice

Which of the following is not seen by economists as an underlying cause of business cycle fluctuations?

• A)unexpected financial bubbles that eventually burst
• B)shocks to the money supply by the nation's central bank
• C)supply shocks caused by major innovations
• D)All of these are identified as causes of business cycle changes.

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Definitions:

Equivalent Units

A concept used in cost accounting to express the amount of materials or labor that has been transformed into completed units during a period.

Direct Materials

The raw materials that are directly incorporated into a finished product, which are easily traceable and assignable to the manufacturing cost.

Conversion Costs

The total cost of converting raw material into finished goods, typically comprising direct labor and manufacturing overhead costs.

First-In, First-Out

An inventory valuation method where the first items acquired are assumed to be sold first, aiming to keep inventory valuations closely aligned with the cost of replacing inventory.