The US Price Level Rose More Than Expected After the 2008-2009

question 179

True/False

The U.S. price level rose more than expected after the 2008-2009 stimulus policy actions.

---

Definitions:

CVP Analysis

Short for Cost-Volume-Profit Analysis, a tool used to determine how changes in costs and volume affect a company's operating income and net income.

Contribution Margin Ratio

The ratio of sales income that surpasses variable expenses, showing the extent to which revenue assists in covering fixed costs and generating profit.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Operating Leverage

The degree to which a company can increase its profits by increasing sales, reflecting how fixed costs are leveraged against sales volume.