Other Things the Same,if a Country Raises Its Saving Rate,when

question 143

Multiple Choice

Other things the same,if a country raises its saving rate,when is productivity growth higher?

• A)as the economy moves toward the long run and in the long run.
• B)as the economy moves toward the long run,but not in the long run.
• C)in the long run,but not as the economy moves toward the long run.
• D)neither as the economy moves toward the long run,nor in the long run.

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Definitions:

Absorption Costing Income Statement

An income statement format that includes all manufacturing costs (both fixed and variable) in the calculation of the cost of goods sold.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Contribution Margin

The difference between the sales revenue of a product and the variable costs associated with producing it, used to cover fixed costs and contribute to profit.

Variable Costing

An accounting method that only includes variable production costs—costs that change with production volume—in the cost of goods sold.