Which of the Following Is True of a Price Level

question 51

Multiple Choice

Which of the following is true of a price level increase in an economy?

• A)When the price level increases,the purchasing power of money increases.
• B)When the price level increases,the purchasing power of money decreases.
• C)When the price level increases,the purchasing power of money remains unchanged.
• D)When the price level increases,the purchasing power of money either increases or decreases,depending upon the size of the national debt.
• E)When the price level increases,the purchasing power of money either increases or decreases,depending upon the level of government expenditures.

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Definitions:

Labor Rate Variance

This measures the difference between the actual wages paid to workers and the expected wages as per standard cost for the actual labor hours worked.

Variable Overhead Rate Variance

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

November

The eleventh month of the Gregorian calendar, following October and preceding December.

Variable Overhead Efficiency Variance

The difference between the expected and actual variable overhead costs, based on the efficient use of production resources.