Demand-Pull Inflation Occurs When Aggregate Demand Expands Beyond the Level

question 202

True/False

Demand-pull inflation occurs when aggregate demand expands beyond the level necessary for full employment.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the standard variable overhead expected for the actual production achieved.

Variable Overhead Efficiency Variance

A measure used in cost accounting to evaluate the efficiency of variable production costs, comparing the actual hours worked to the standard hours expected.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost.

Labor Rate Variance

A measure used in cost accounting to analyze the difference between the actual labor cost incurred and the standard labor cost for the actual labor hours worked.