-In the Figure Above, the Shift in the Aggregate Demand

question 92

Multiple Choice

-In the figure above, the shift in the aggregate demand curve from AD₁ to AD₂ could be result of

• A)a fall in the price level.
• B)a decrease in the quantity of money.
• C)an increase in government expenditures on goods and services.
• D)an increase in taxes.
• E)a rise in the price level.

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or budgeted) cost, based on standard rates and actual hours worked.

Actual Costs

The real financial expenditures that a company incurs, as opposed to budgeted or estimated costs.

Standard Materials Quantity

The predetermined amount of materials expected to be used in the production of a single unit or a batch of product, under normal conditions.

Direct Labor Hour

A measure of the labor time specifically involved in the direct manufacture of products, not including indirect tasks.