Pessimism Suppose the Economy Is in Long-Run Equilibrium. Then Because of of Corporate

question 85

Multiple Choice

Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.


-Refer to Pessimism.What happens to the expected price level and what's the result for wage bargaining?

• A)The expected price level rises.Bargains are struck for higher wages.
• B)The expected price level rises.Bargains are struck for lower wages.
• C)The expected price level falls.Bargains are struck for higher wages.
• D)The expected price level falls.Bargains are struck for lower wages.

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Definitions:

Manufacturing Overhead

The indirect factory-related costs that are incurred when a product is manufactured, including costs such as maintenance, utilities, and quality control.

Standard Costing System

An accounting method that uses standard costs for product cost planning and control, involving setting predetermined costs for manufacturing activities.

Variable Overhead Efficiency Variance

Measures the difference between the actual hours taken to produce an item and the standard hours expected, multiplied by the variable overhead rate per hour.

Direct Labor-Hours

The total hours of labor directly involved in manufacturing a product or providing a service, which are directly attributable to the cost of creating that product or service.