In General,the Faster Inflationary Expectations Adjust

question 46

Multiple Choice

In general,the faster inflationary expectations adjust,

• A)the less macro policy can influence unemployment
• B)the better discretionary policy can be expected to work
• C)the slower the adjustment of the short-run Phillips curve
• D)the stronger the case for active policy
• E)none of the above

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Definitions:

Variable Overhead Efficiency Variance

This variance measures the difference between the actual hours taken to produce a good and the standard hours expected, multiplied by the variable overhead rate per hour.

Variable Overhead

Costs that vary in direct proportion to changes in the operational activity of a business, such as utility bills or raw material costs.

Budgeted Production

represents the amount of production planned for a future period as part of the budgeting process.

Standard Cost System

An accounting system that uses standard costs for cost control and decision making.