The Great Moderation Consensus Among Macroeconomists Is Described by All

question 199

Multiple Choice

The Great Moderation consensus among macroeconomists is described by all of the following EXCEPT that:

• A)monetary policy should play the main role in stabilization policy.
• B)the central bank should be independent of politics.
• C)discretionary fiscal policy should be used sparingly.
• D)monetary policy is the only way to get out of the liquidity trap.

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Definitions:

Standard Overhead Cost

The pre-determined or estimated cost of indirect expenses that a company expects to incur during a specific period.

Direct Labor Cost Variance

The difference between the budgeted cost of direct labor for production and the actual cost incurred, indicating over or under allocation of resources.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, indicating discrepancies in workforce expenses.

Direct Labor Efficiency Variance

A measure of the difference between the actual hours worked and the standard hours expected for the production accomplished.