If Aggregate Demand Shifts Right and the President and Congress

question 23

Multiple Choice

If aggregate demand shifts right and the President and Congress want to use fiscal policy to reverse the change in output,they could

• A)increase government expenditures.If by the time policy has been implemented the economy has moved back to long-run equilibrium,then this policy will raise output above its long-run level.
• B)increase government expenditures.If by the time policy has been implemented the economy has moved back to long-run equilibrium,then this policy will reduce output to below its long-run level.
• C)decrease government expenditures.If by the time policy has been implemented the economy has moved back to long-run equilibrium,then this policy will raise output above its long-run level.
• D)decrease government expenditures.If by the time policy has been implemented the economy has moved back to long-run equilibrium,then this policy will reduce output to below its long-run level.

Understand the core information requirements and challenges involved in both basic and extended MRP systems.

Comprehend how an organization's process choice influences its master production schedule.

Recognize the importance of lot sizing in MRP and the potential ramifications of overemphasis.

Explain the role of bill of material (BOM) explosion in MRP and how it determines when parts are needed.