Deflation Occurs When

question 56

Multiple Choice

Deflation occurs when

• A)there is a sustained increase in the price level.
• B)there is a one-time increase in the price level.
• C)there is a decline in the price level.
• D)there is a decrease in the expected rate of inflation.

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Definitions:

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the costs associated with these materials for a specific period.

Production Budget

An estimate of the total cost of production, including direct material, labor, and overhead expenses, for a specific period.

Management's Plans

The strategic and operational plans developed by a company's management to achieve its goals and objectives.

Direct Labor Hours

The sum of working hours of employees directly participating in the production of goods or provision of services.