An Increase in ________ Increases Potential GDP and ________ Aggregate

question 12

Multiple Choice

An increase in ________ increases potential GDP and ________ aggregate supply.

• A)technology;increases
• B)technology;decreases
• C)the money wage rate;increases
• D)the money price of oil;decreases
• E)the money wage rate;decreases

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the production period based on an estimation of costs and activity levels.

Machine-Hours

A unit of measure representing the operation of machinery over time, typically used for allocating manufacturing overhead costs.

Predetermined Overhead Rate

A rate calculated at the beginning of a period for allocating estimated overhead costs to cost objects based on a chosen activity base.

Machine-Hours

This refers to the total number of hours that machinery is in operation, used as a basis for allocating manufacturing overhead to products.