Which of the Below Statements Is FALSE

question 5

Multiple Choice

Which of the below statements is FALSE?

• A) An important source of inflation is an economic shock in the supply of a crucial material, such as the oil shocks of the 1970s, which affected almost all countries.
• B) It is important to realize that high employment is one of the Fed's goals because, in certain circumstances, the Fed's policy can indirectly influence the level of employment.
• C) Given that zero unemployment is not a feasible aim, the appropriate goal of the Fed and other governmental policy makers is actually a high level of employment.
• D) Stability in the price level is a secondary goal of the Fed.

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Definitions:

Actual Output

The real quantity of goods or services produced by a company, as opposed to planned or expected output.

Standard Variable Overhead Rate

The rate used in budgeting and costing that applies variable overheads to a specific activity basis such as labor hours.

Direct Labour Hours

The aggregate hours employees devoted to the process of production have logged.

Variable Overhead

Costs that vary with the level of output, such as utilities and labor, as opposed to fixed overheads.