If Real GDP Is Greater Than Natural Real GDP,the Economy

question 77

Multiple Choice

If Real GDP is greater than Natural Real GDP,the economy is in a(n)

• A) frictional gap.
• B) structural gap.
• C) recessionary gap.
• D) inflationary gap.

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Definitions:

Manufacturing Overhead

All indirect manufacturing costs, including but not limited to utilities, rent, and salaries of supervisors.

Direct Materials Cost

The expense incurred for raw materials that are directly traceable to the production of specific goods or services.

Raw Materials Inventory

The total cost of all the parts and materials that are held in stock by a company and are used in the production process.

Cost of Goods Manufactured

The total cost incurred to produce products that were completed during a specific accounting period.