When the Output Gap Is Positive, It Represents Gap, and When

question 181

Multiple Choice

When the output gap is positive, it represents gap, and when it is negative, it represents
Gap)

• A) an employment;an unemployment
• B) an inflationary;a recessionary
• C) a recessionary; an inflationary
• D) an inflationary; an employment

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Definitions:

Carrying Costs

Costs that rise with increases in the level of investment in current assets.

Average Inventory

The mean value of inventory over a certain time period, used for inventory management and planning.

Carrying Cost

The total cost of holding inventory, including storage, insurance, and obsolescence.

Net Present Value

A calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate.