Figure 30-3

question 91

Multiple Choice

Figure 30-3. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes.
-Refer to Figure 30-3. At the end of 2009 the relevant money-supply curve was the one labeled MS1. At the end of 2010 the relevant money-supply curve was the one labeled MS2. Assuming the economy is always in equilibrium, what was the economy's approximate inflation rate for 2010?

• A) -33 percent
• B) 17 percent
• C) 50 percent
• D) 67 percent

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Definitions:

Direct Materials Used

The raw materials directly traced to the manufacturing of a product and included in its cost.

Actual Overhead

The actual incurred costs associated with running a production or operation, excluding direct materials and direct labor.

Cost of Goods Sold

Costs directly related to the manufacturing of goods a company sells, which cover materials and workforce expenses.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold.