Disinflation Would Eventually Cause

question 75

Multiple Choice

Disinflation would eventually cause

• A)the short-run and the long-run Phillips curve to shift right.
• B)the short-run and the long-run Phillips curve to shift left.
• C)the short-run Phillips curve, but not the long-run Phillips curve, to shift right.
• D)the short-run Phillips curve, but not the long-run Phillips curve, to shift left.

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Definitions:

Direct Labor-Hour

A unit measuring the time workers who are directly involved in the production process spend on creating a unit of product.

Underapplied Overhead

A situation where the allocated overhead cost is less than the actual overhead incurred, leading to insufficient cost recovery.

Direct Labor-Hours

The total hours of labor directly involved in producing goods or delivering services.

Underapplied Overhead

Occurs when the overhead assigned to products is less than the overhead actually incurred, leading to a shortfall that needs to be addressed in cost accounting.