Use the Figure Below to Answer the Following Questions

question 24

Multiple Choice

Use the figure below to answer the following questions.

Figure 26.3.5
-Refer to Figure 26.3.5. If the aggregate demand curve is AD₂, real GDP is

• A)$13 trillion.
• B)$13.5 trillion.
• C)more than $13 trillion and less than $13.5 trillion.
• D)less than $13 trillion.
• E)100

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Definitions:

Flexible Budget

A financial plan that adjusts or varies with changes in the volume or activity level.

Machine Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead costs to products.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies with production volume.

Indirect Labor

Labor costs associated with workers who are not directly involved in producing goods but support the production process.