In a Macro Model with a Constant Price Level,an Increase

question 76

Multiple Choice

In a macro model with a constant price level,an increase in government purchases will cause the AE curve to shift

• A)downward and the AD curve to shift to the right.
• B)downward and the AD curve to shift to the left.
• C)downward and a movement to the right along the AD curve.
• D)upward and the AD curve to shift to the left.
• E)upward and the AD curve to shift to the right.

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Definitions:

Fixed Order Interval

A replenishment method where orders are placed at fixed intervals, ensuring a periodic review and stock refill.

EOQ Model

Economic Order Quantity Model, an inventory management tool used to determine the optimal order size that minimizes total inventory costs including holding and ordering costs.

SKUs

Stock Keeping Units, a unique identifier for each distinct product and service that can be purchased.

Inventory Management

The supervision of non-capitalized assets and stock items, focusing on ordering, storing, and using a company's inventory.