Because the Fixed-Quantity System Orders the Same Amount Each Time

question 14

True/False

Because the fixed-quantity system orders the same amount each time, time between orders will be constant, even with variable demand.

---

Definitions:

Recession

An interval where the economy experiences a downturn, with a noticeable decrease in trade and manufacturing activities, usually identified by GDP decreasing for two straight quarters.

Inflation

An increase in the economy’s average price level.

Expansion

Expansion refers to the phase in the economic cycle where an economy is growing and experiencing increasing levels of output, employment, and income.

Actual Output

The actual quantity of goods and services produced in an economy over a specific period.