Refer to the Information Provided in Table 8

question 137

Multiple Choice

Refer to the information provided in Table 8.4 below to answer the questions that follow.
Table 8.4

-Refer to Table 8.4.At an aggregate output level of $600 billion,the unplanned inventory change is

• A)-$100 billion.
• B)-$50 billion.
• C)$0.
• D)$50 billion.

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Definitions:

Inventory Turnover Ratio

A measure of how many times a company's inventory is sold and replaced over a period. It indicates the efficiency of inventory management.

ROE

Return on Equity, a measure of a company's profitability that reveals how much profit a company generates with the money shareholders have invested.

Inventories

Assets held for sale in the ordinary course of business, or in the process of production for such sale, or in the form of materials to be consumed in the production process.

Basic Earning Power

A measure of a firm's profitability and efficiency, calculated as earnings before interest and taxes divided by total assets.