In a Graph of the Aggregate Demand Curve,a Decrease in Investment

question 132

Multiple Choice

In a graph of the aggregate demand curve,a decrease in investment by businesses is represented by a:

• A) Leftward shift of the curve.
• B) Rightward shift of the curve.
• C) Movement up the curve.
• D) Movement down the curve.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the budgeted cost of labor at the standard rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost accounting.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on the predetermined rate.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and included in the direct costs of production.