In the Long Run,what Determines the Level of Output

question 54

Multiple Choice

In the long run,what determines the level of output?

• A) the money supply
• B) the price level
• C) supply of capital and labour
• D) policies aimed at stabilizing the economy

---

Definitions:

Direct Labor-Hours

A measure of the actual labor time spent on producing goods, often used to allocate manufacturing overhead to products.

Plantwide Predetermined Rate

A single overhead absorption rate calculated for an entire manufacturing plant, used to allocate manufacturing overhead to individual products.

Machine-Hours

A measure of production time, indicated by the number of hours machines are operating in the manufacturing process.

Manufacturing Cost

The total cost incurred by a company to produce goods, including raw materials, labor, and overhead.