An Autonomous Increase in Net Exports for Any Given Inflation

question 29

Multiple Choice

An autonomous increase in net exports for any given inflation rate ________.

• A)would add directly to planned expenditures
• B)would raise the equilibrium level of output
• C)causes the aggregate demand curve to shift to the right
• D)all of the above
• E)none of the above

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Definitions:

Machine Hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and efficiency.

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead and the actual fixed overhead incurred, due to changes in production volume.

Standard Cost

A predetermined cost of manufacturing an item, including direct materials, labor, and overheads, used for budgeting and performance evaluation.

Overhead Cost Performance Report

A document that compares the actual overhead costs incurred to the budgeted or standard overhead costs, for the purpose of monitoring and controlling these costs.