In Long-Run Macroeconomic Equilibrium

question 40

Multiple Choice

In long-run macroeconomic equilibrium

• A) the price level and aggregate demand are what suppliers expected.
• B) all spending plans are realized.
• C) consumers earn enough income to buy the products and services they planned to buy.
• D) no one is kicking himself.
• E) all of the above are true.

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Definitions:

Standard Cost Variances

The differences between the actual costs incurred and the standard costs against which they are measured, often analyzed for materials, labor, and overhead.

Cost of Goods Sold

Represents the total direct costs attributable to the production of goods sold in a company, including materials and labor.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (standard) cost, indicating how effectively a company controls its materials costs.

Raw Material Purchase

The process of acquiring the basic materials needed for production of goods.