Which of the following statements are true? Multiple select question. Raw materials inventory represents the cost of materials not yet used in production. Direct labor costs flow through the Raw materials inventory account. Raw materials inventory only includes the cost of direct materials. When materials are purchased they are recorded in the Raw materials inventory account.

Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.