Explanation:
STATIC BUDGET ACTUAL VARIANCE
Units 6000 6500
variable costs
Direct material 30000 27500 2500 favorable
Direct labor 66000 65000 1000 favorable
Manufacturing overhead 102000 110000 8000 Unfavorable
Fixed costs
Depreciation 7500 7500 None
supervision 3500 3700 200 Unfavorable
Total expenses 209000 213700 4700 unfavorable
Answer:
Lag startegy
Explanation:
Mark is using Lag Strategy to minimize the foreign exchange exposure.
Lag Strategy refers to a situation of adding capacity only after the company is running at full capacity or beyond caused by an increase in demand. This strategy is conservative strategy. It reduces the risk of waste but then it could bring about a loss of possible customers.
Answer:
a) Decrease LRAS
b) Decrease LRAS
c) Increase AD
d) Increase AD
Explanation:
steel workers go on strike so less steel is produced : this will cause a decrease in the log run aggregate supply of steel in the economy
A tornado destroys factories in Louisiana.: this will cause a decrease in the log run supply of factory products and by-products in the economy
Consumer optimism increases.leads to an increase in the aggregate demand curve
The stock market rallies to 52-week highs increasing consumer wealth. this will definitely lead to an increase in the aggregate demand curve because with more money to spend the demand curve will increase
Answer:
b. could be low because people might adjust their expectations quickly if they found anti-inflation policy credible
Explanation:
In the given situation, it is mentioned that the rational expectations proponets said that the sacrified ratio would be lesser as the people wants to adjust their expectations in a fastest way in the case when they found that the anti-inflation policy is credible
Therefore as per the given situation, the option b is correct
