Inflation and Unemployment

question 125

Multiple Choice

Inflation and unemployment

• A) are the focus of normative economics.
• B) are a focus of microeconomics.
• C) are a focus of positive economics.
• D) are a focus of macroeconomics.

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Definitions:

Safety Stock

Additional inventory beyond expected demand, kept on hand to prevent stockouts typically caused by uncertainties in supply or demand.

Inventory

The total amount of goods and materials held by a company intended for sale or used in production, crucial for managing supply chains and fulfilling customer orders.

Economic Order Quantity

A formula used to determine the ideal order quantity that minimizes the total costs of inventory, including holding costs and ordering costs.

Shortage Cost

Shortage cost refers to the costs a company incurs when it is unable to meet demand due to insufficient inventory or resources.