Which of the Following Decreases U.S. Aggregate Demand

question 89

Multiple Choice

Which of the following decreases U.S. aggregate demand?

• A)​a lower price level, increasing citizen's real wealth
• B)​a lower price level, reducing interest rates
• C)​a lower price level, increasing exports and decreasing imports
• D)​None of the above decrease U.S.aggregate demand.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) cost based on the actual level of activity.

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity of materials purchased.

Labor Rate Variance

The difference between the expected cost of labor per unit of production and the actual cost, often used to identify efficiency and wage rate changes.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allocated for the actual production volume, resulting from efficiency in variable overhead resource usage.