Figure 22-6 Use the Two Graphs in the Diagram to Answer the Answer

question 285

Multiple Choice

Figure 22-6
Use the two graphs in the diagram to answer the following questions.
-Refer to Figure 22-6. The economy would move from 3 to 5

• A)in the short run if money supply growth increased unexpectedly.
• B)in the short run if money supply growth decreased unexpectedly.
• C)in the long run if money supply growth increases.
• D)in the long run if money supply growth decreases.

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Definitions:

Operations

Activities involved in the day-to-day functions of a business that are necessary for it to run efficiently and effectively.

EOQ

Economic Order Quantity, the ideal order quantity a company should purchase to minimize its inventory costs, including holding and ordering costs.

Fixed Ordering Costs

The consistent costs associated with placing an order for goods or services, regardless of the order size.

Carrying Cost

Carrying cost represents the total cost of holding inventory, including storage costs, insurance, depreciation, and opportunity costs among others.