The Following Table Shows Capacity Requirements Data for Making Table

question 24

Multiple Choice

The following table shows capacity requirements data for making table tops. Which of the following is TRUE?

• A)Overtime is needed in day 1.
• B)Capacity exactly meets demand in day 5.
• C)All of the excess demand in days 4 and 5 can be shifted to day 3.
• D)New machines are needed.

---

Definitions:

Credibility

The quality of being trusted and believed in, often critical in financial markets, international relations, and information dissemination.

Sacrifice Ratio

A measure of the economic cost of reducing inflation, quantified by the percentage loss in output or production for a one percent decrease in inflation.

Inflation Reduction

Efforts or policies aimed at slowing the rate of inflation in order to stabilize the economy and maintain the purchasing power of currency.

Natural Rate

Often referred to as the natural rate of unemployment, it is the level of unemployment consistent with a stable inflation rate.