The Percentage of Value of Shipments That Come from Materials

question 90

Multiple Choice

The percentage of value of shipments that come from materials for the average manufacturer is:

• A)greater than or equal to 40 and less than or equal to 49 percent.
• B)greater than or equal to 50 and less than or equal to 59 percent.
• C)greater than or equal to 60 and less than or equal to 69 percent.
• D)greater than or equal to 70 percent.

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Definitions:

Supply Shock

A supply shock is an unexpected event that suddenly changes the supply of a product or commodity, leading to sudden changes in its price.

Recessionary Gap

A situation where the real Gross Domestic Product (GDP) is lower than the potential GDP, indicating underperformance in the economy.

Aggregate Demand Curve

A graphical representation of the relationship between the total demand for goods and services in an economy at different price levels.

Long-Run Aggregate Supply

The total quantity of goods and services an economy can produce when resources are fully employed, assuming constant technology and factors of production.