The 2008-2009 Recession Must Have Been a Result of ________

question 2

Multiple Choice

The 2008-2009 recession must have been a result of ________ because otherwise the combination of the ________ cannot be explained.

• A)a decrease in AD and an increase in AS;fall in the price level and the decrease in real GDP
• B)a decrease in AD and an increase in AS;rise in the price level and the decrease in real GDP
• C)an increase in AD and AS;rise in the price level and the decrease in real GDP
• D)a decrease in AD and AS;rise in the price level and the decrease in real GDP
• E)a decrease in AD and AS;decrease in the price level and the decrease in real GDP

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Definitions:

Overhead Efficiency

A measure of how effectively a business uses its fixed overheads to generate sales or production output.

Fixed Overhead Budget

A financial plan that forecasts the fixed overhead costs a company expects to incur, regardless of its level of output.

Fixed Overhead Volume

A measurement of the costs that remain constant regardless of the company's level of production or business activity.

Overapplied

In cost accounting, this refers to a situation where the allocated overhead costs exceed the actual overhead costs incurred.