A Decline in the Equilibrium Level of GDP Is Most

question 27

Multiple Choice

A decline in the equilibrium level of GDP is most likely to be caused by:

• A)a downshift in the investment schedule.
• B)an upshift in the investment schedule.
• C)a downshift in the consumption schedule.
• D)an upshift in the saving schedule.

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Definitions:

Favorable Cost Variance

A variance that occurs when the actual cost is less than standard cost.

Revenue Price Variance

The difference between the actual revenue received from selling a product and the expected revenue, based on standard pricing.

Revenue Volume Variance

The difference between the planned and actual units sold multiplied by the planned sales price.

Total Revenue Variance

The difference between the actual total revenue earned and the expected total revenue in a period.