During 2015,a Country Reported That Its Real GDP Increased by $3.0

question 163

Multiple Choice

During 2015,a country reported that its real GDP increased by $3.0 billion.If the slope of its aggregate planned expenditure curve is 0.9,then which of the following might have led to the increase in real GDP?

• A)Imports increased by $0.3 billion.
• B)Government expenditure on goods and services increased by $3 billion.
• C)Exports increased by $0.3 billion.
• D)Investment decreased by $0.3 billion.
• E)Exports decreased by $0.3 billion.

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Definitions:

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected for the level of production achieved, often indicating productivity levels.

Variable Overhead

Costs that vary with the level of production output, such as utilities for a manufacturing plant, which increase with more production.

Labour Rate Variance

The difference between the actual cost of labor and its expected cost based on standards set for production.

Labour Efficiency Variance

The difference between the actual labor hours used in production and the standard hours expected, multiplied by the standard labor rate.