If the Equilibrium Level of GDP in a Private Open

question 74

Multiple Choice

If the equilibrium level of GDP in a private open economy is $1,000 billion and consumption is $700 billion at that level of GDP, then

• A) saving must be $300 billion.
• B) net exports must be $300 billion.
• C) S + C must equal $300 billion.
• D) Ig + Xn must equal $300 billion.

---

Definitions:

Distance Reductions

A strategy aimed at minimizing the distance traveled during manufacturing or supply chain operations to enhance efficiency and reduce costs.

Safety Stock

Additional inventory kept on hand to mitigate the risk of stockouts due to unpredictable demand.

Lead Time

The amount of time it takes for an order to be fulfilled from the moment it is placed until it is received by the customer.

Kanban Size

The quantity of work or materials specified by a Kanban card, used in a pull system to control inventory and workflow.