Which of the Following Affected Aggregate Demand During the Recession

question 37

Multiple Choice

Which of the following affected aggregate demand during the recession of 2008-2009?

• A)a decline in residential construction and a decrease in lending
• B)a decline in residential construction but not a decrease in lending
• C)a decrease in lending but not a decline in residential construction
• D)neither a decrease in residential construction nor a decrease in lending

---

Definitions:

Factory Overhead Cost

All indirect costs associated with manufacturing, excluding direct materials and direct labor. These can include utilities, maintenance, and salaries of non-direct labor employees.

Variance Report

A document that compares actual financial performance to planned or budgeted performance, highlighting variances between these figures.

Machine Hours

A measure of the operating time of machines or equipment, typically used in allocating manufacturing costs.

Fixed Overhead Rate

A predetermined rate used to allocate fixed overhead costs to units of output, based on a standard level of activity.