If the IS Curve Is Given by Y = 1,700

question 81

Multiple Choice

If the IS curve is given by Y = 1,700 - 100r and the LM curve is given by Y = 500 + 100r, then equilibrium income and interest rate are given by:

• A) Y = 1,100, r = 6 percent.
• B) Y = 1,200, r = 5 percent.
• C) Y = 1,000, r = 5 percent.
• D) Y = 1,100, r = 5 percent.

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Definitions:

Activity-Based Costing

An accounting technique that assigns costs to units based on the activities needed to produce or deliver them, enhancing costing accuracy.

Overhead Cost

Indirect costs related to the general operation of the company, such as rent, utilities, and management salaries, not directly tied to production or sales.

Unit

A single, complete, or individual item that can be counted for inventory, production, or sales purposes.

Unit Level Activities

Activities that are performed each time a unit is produced, directly associated with production volume.