Refer to Figure 9.2 for the Following Questions

question 66

Multiple Choice

Refer to Figure 9.2 for the following questions.
Figure 9.2

-Suppose that in Figure 9.2, the level of GDP associated with point N is potential GDP. If the Australian economy is currently at point K:

• A)firms are operating above capacity.
• B)the economy is at full employment.
• C)the economy is in equilibrium below full employment.
• D)the level of unemployment is equal to the natural rate.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost, indicating efficiency or inefficiency in workforce use.

November

The eleventh month of the year in the Gregorian calendar, characterized by the transition from fall to winter in many regions.

Standard Cost

A predetermined cost of manufacturing, used for budgeting and assessing performance.

Per Unit

Refers to the measurement or cost associated with one single unit of product or service.