The Text Compares the Macroeconomic Performance of Great Britain and France

question 90

Multiple Choice

The text compares the macroeconomic performance of Great Britain and France immediately following Great Britain's departure from the ERM in 1992. What does it conclude?

• A) The rate of growth of real GDP was higher in France than in Great Britain.
• B) The rate of growth of real GDP was lower in France than in Great Britain.
• C) The rates of growth of real GDP were equal in France and in Great Britain.
• D) GDP growth of both Great Britain and France increased dramatically after Great Britain withdrew from the ERM.

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Definitions:

Machine Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing costs to units of product.

Finished Goods

Items that are finished being made but have not been purchased by consumers yet.

Cost of Goods Sold

The total cost of manufacturing or purchasing the goods that a company sold during a specific period.

Direct Labor Hours

The total hours of labor directly involved in producing goods or providing services, used in calculating labor costs and efficiency.