Consider an Output Gap Where Y < Y^*

question 45

Multiple Choice

Consider an output gap where Y < Y^*.This output gap

• A)is desirable because it keeps wage costs low.
• B)represents a loss of output due to unemployed resources.
• C)tends to force prices up.
• D)occurs when there is excess demand.
• E)is known as an inflationary boom.

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Definitions:

Supply Chain Efficiency

The effectiveness with which a supply chain operates, aiming to minimize costs and waste while maximizing speed and quality.

Implied Uncertainty

The uncertainty in outcomes or future conditions that is suggested or inferred but not explicitly stated or known.

Cost-Responsiveness Efficient Frontier

An analytical concept in supply chain management that shows the trade-off between the cost of a supply chain and its responsiveness to customer demands.

Responsiveness

The ability of a business or system to quickly and effectively adapt to changes in demand or conditions.