To Reach General Equilibrium,the Price Level Adjusts to Shift the ________

question 99

Multiple Choice

To reach general equilibrium,the price level adjusts to shift the ________ until it intersects with the ________.

• A)IS curve; FE line and LM curve
• B)FE line; LM and IS curves
• C)LM curve; FE line and IS curve
• D)ND curve; FE line and NS curve

Understand the concept of trade balances, including deficits and surpluses.

Analyze the factors influencing net exports and net capital outflow.

Explain the impact of international transactions on a country's net exports.

Determine the effect of currency exchanges and investment on net capital outflow.

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Definitions:

Direct Labor

Direct labor refers to the wages or salaries paid to employees who are directly involved in the manufacturing or production of goods.

Overhead

The indirect costs or expenses incurred by a business that are not directly tied to specific product production or service.

Conversion Cost

The sum of direct labor costs and manufacturing overhead costs, representing the expenses necessary to convert raw materials into finished goods.

Equivalent Unit

A concept used in cost accounting to represent a partially finished unit in terms of a full finished unit.