Demand-Pull Inflation Can Result When

question 47

Multiple Choice

Demand-pull inflation can result when

• A)policymakers set an unemployment target that is too high.
• B)a persistent budget deficit is financed by selling bonds to the public.
• C)a persistent budget deficit is financed by selling bonds to the central bank.
• D)workers get numerous wage increases.

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Definitions:

Variable Costing

A costing method that includes only variable costs (direct materials, direct labor, and variable overhead) in the cost of goods sold, treating fixed costs as period costs.

Product Cost

The total expenses incurred to produce a product, including labor, materials, and overhead.

Per Unit

A term referring to the cost or price of a single item or service when discussing bulk production or sales.

Variable Costing

An accounting method that includes only variable production costs (costs that change with the level of production) in product costs.