A Rise in the Expected Inflation Rate Leads to ________

question 104

Multiple Choice

A rise in the expected inflation rate leads to ________ in the long-run Phillips curve and ________ in the short-run Phillips curve.

• A) an upward shift; no shift
• B) a leftward shift; an upward shift
• C) no shift; no shift
• D) no shift; an upward shift

Understand financial metrics and calculations relevant to supply chain and logistics, such as Gross Margin, Strategic Profit Model (SPM), and Earnings Before Interest and Taxes (EBIT).

Distinguish between metric, measure, and index, and understand the concept of order cycle time (OCT) and its implications.

Appreciate the importance of involving customers and suppliers in the development of metrics.

Understand the factors crucial to the development of successful supply chain metrics and the impact of logistics service on financial performance.

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Definitions:

Faulty Heuristics

Cognitive shortcuts that lead to errors in judgment or decision-making due to biases or flawed logic.

Impulse Control

The ability to resist or delay an impulse, urge, or temptation to perform an action.

Recognition Heuristic

A decision-making process where a more recognized option is chosen over the less familiar one, based on the assumption that recognition is correlated with value.

Behavioral Economics

A method of economic analysis that applies psychological insights into human behaviour to explain economic decision-making.