A Goal of Macroeconomic Policy Should Be to _____ Business-Cycle

question 84

Multiple Choice

A goal of macroeconomic policy should be to _____ business-cycle fluctuations in an economy.

• A) increase
• B) reduce
• C) ignore
• D) encourage

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Definitions:

Variable Manufacturing Overhead

Indirect manufacturing costs that vary with the level of production, such as utilities for the production area.

Fixed Manufacturing Overhead

Expenses that do not vary with the level of production, such as rent, salaries, and depreciation of manufacturing facilities.

Variable Distribution Costs

Expenses related to the delivery or distribution of a product that vary in proportion to the volume of units sold.

Contribution Margin

The amount remaining from sales revenue after variable production costs and variable expenses have been deducted; used to cover fixed costs and to generate profit.