In the Keynesian Framework,as Long as Output Is ________ the Equilibrium

question 37

Multiple Choice

In the Keynesian framework,as long as output is ________ the equilibrium level,unplanned inventory investment will remain ________ and firms will continue to lower production.

• A)below;negative
• B)above;negative
• C)below;positive
• D)above;positive

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Definitions:

Variable Manufacturing Overhead

Costs that vary with the level of production output and may include expenses such as indirect materials, utilities, and overtime labor.

Raw Materials

Primary substances or components that are converted through the manufacturing process into a finished product.

Quantity Variance

The difference between the actual quantity of materials or labor used in production and the expected quantity, based on standard costs.

Direct Labor-Hours

The gross hours worked by personnel directly implicated in production operations.