The Outside Lag of Macroeconomic Policy Is The

question 53

Multiple Choice

The outside lag of macroeconomic policy is the:

• A)time between a shift in aggregate demand and a shift in aggregate supply.
• B)delay between when a policy change is needed and the policy is implemented.
• C)difference between actual inflation and the target rate of inflation.
• D)delay between when a policy change is implemented and when most of the effects of policy have occurred in the economy.

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Definitions:

Actual Direct Labor Cost

The total expense of labor directly involved in the production of goods or services, as it actually occurred.

Labor Rate Variance

Labor rate variance measures the difference between the actual labor costs incurred and the expected (or standard) labor costs, indicating discrepancies in wage rates or labor efficiency.

Actual Direct Labor Rate

The actual wage rate paid to workers, as opposed to the expected or standard rate used in budgeting or costing.

Direct Labor-hours

The total hours of labor directly involved in the manufacturing process of a product.