Explain the Organisation for Economic Co-Operation and Development (OECD) Summary

question 5

Essay

Explain the Organisation for Economic Co-operation and Development (OECD) summary forecast for Germany using aggregate demand-aggregate supply analysis: 'The export-led recovery is continuing, with domestic demand, notably business investment and private consumption, increasingly contributing to growth. Employment continues to rise and, coupled with wage increases, should support private consumption growth over the next couple of years.'

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Definitions:

Absorption Costing

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Variable Costing

An accounting method that includes only variable costs - costs that change with production levels - in product cost calculations.

Net Operating Income

It refers to the profit generated from a company's ordinary, core business operations after subtracting operating expenses from operating revenues.

First Year

The initial year of operation, production, or accounting period.