Figure 33-4 Figure 33-4 Shows Four Movements of the Inflation Rate and Inflation

question 164

Multiple Choice

Figure 33-4

Figure 33-4 shows four movements of the inflation rate and the unemployment rate. Which panel shows the movement associated with a "supply shock" like those of the 1970s?

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Value-Added

The enhancement a company gives its product or service before offering the product to customers, increasing its value.

Non-Value-Added

Activities or processes that consume resources but do not add value to the product or service from the customer's perspective.

Total Lead Times

The aggregate time taken from the initiation of a process until its completion, often used in manufacturing to describe the period from ordering materials to the final product delivery.

Value-Added Ratio

The proportion of time spent on non-waste activities in the production process.