For the Following Questions, Use the Diagram Below

question 201

Multiple Choice

For the following questions, use the diagram below:
Figure 21-7.
-Refer to Figure 21-7. The aggregate-demand curve could shift from AD₁ to AD₂ as a result of

• A)an increase in government purchases.
• B)a decrease in stock prices.
• C)consumers and firms becoming more optimistic about the future.
• D)an increase in the price level.

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Definitions:

Product Availability

The extent to which a product can be purchased by consumers, determined by factors such as stock levels and distribution efficiency.

Inventory Holding Costs

The expenses associated with storing unsold goods, including warehousing, insurance, and deterioration.

Product Fill Rate

The percentage of customer or sales orders fulfilled from stock at hand.

Order Fill Rate

A measure of supply chain efficiency that indicates the percentage of customer orders that are fulfilled without backorders or stockouts.