Figure 7-3 -Refer to Figure 7-3. Suppose That the Economy Is in Economy

question 136

Multiple Choice

Figure 7-3
-Refer to Figure 7-3. Suppose that the economy is in long-run equilibrium at point A. Now suppose net exports increase. What happens in the short run?

• A) There will be an increase in aggregate output demanded and the economy moves from point A to point G.
• B) Real GDP increases to Y₂ and the price level rises to P₂.
• C) Real GDP decreases to Y₃ and the price level falls to P₃.
• D) Since the economy is already at its potential output, only the price level will rise to P₂.

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Definitions:

Scorecard

A performance measurement tool that tracks the success or achievement against defined targets or criteria.

Key Performance Indicators

Metrics used to evaluate the success of an organization or of a particular activity in which it engages.

Order Cycle Time

The total time from when a customer places an order until the product is delivered, used as a key performance indicator in supply chain management.

Logistics Service Metric

Quantitative measures used to track, analyze, and optimize logistics operations, ensuring the efficiency, effectiveness, and quality of supply chain processes.