Assume That Political Business Cycles Do NOT Exist

question 30

Multiple Choice

Assume that political business cycles do NOT exist.Given this assumption,we would expect,all else fixed,the output growth to be highest in which period?

• A)just prior to an election
• B)just after an election
• C)in the first year of an administration
• D)in the second year of an administration
• E)none of the above

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Definitions:

Fixed Overhead Variance

The difference between actual fixed overhead costs and the expected (or budgeted) fixed overhead costs.

Volume Variance

A financial term that represents the difference between the expected (budgeted) volume of production or sales and the actual volume achieved.

Spending Variance

The difference between the budgeted or planned amount of expense and the actual amount spent.

Variable Overhead Spending Variance

The difference between the actual costs incurred for variable overheads and the expected costs of variable overheads based on standard cost.