Which of the Following Is the Factor That Leads to Business

question 290

Multiple Choice

Which of the following is the factor that leads to business cycles in the new classical business cycle theory?

• A) an unexpected change in aggregate demand
• B) a change by the Fed in the growth rate of the quantity of money
• C) a change in business confidence
• D) a change in the growth rate of productivity

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Definitions:

Purchases

The acquisition of goods or services by a company in exchange for money, which are either used in the process of production or sold to customers.

Total Direct Materials

The sum cost of all raw materials that are directly traceable to the manufacturing of a product.

Raw Materials Used

The total value of all raw materials employed in the manufacturing process to produce finished goods during a specific accounting period.

Manufacturing Overhead

All manufacturing costs that are not directly involved in the production of a product, including indirect materials, indirect labor, and other indirect costs.