Consider the Following to Answer the Question(s) Below

question 17

Multiple Choice

Consider the following to answer the question(s) below:
At a local manufacturing plant, employees must complete new machine set-ups within 30 minutes. New machine set-up times can be described by a Normal model with a mean of 22 minutes and a standard deviation of four minutes.
-The typical worker needs five minutes to adjust to their surroundings before beginning their duties. What percent of new machine set-ups are completed within 25 minutes to allow for this?

• A) 77.3%
• B) 27.3%
• C) 22.7%
• D) 72.7%
• E) 0.75%

---

Definitions:

Equilibrium GDP

Equilibrium GDP, or Gross Domestic Product, is the level of output where aggregate demand equals aggregate supply, resulting in no unintended changes in inventories.

Inflationary Gap

This term reflects the difference between the actual output of an economy and the maximum potential output it could achieve with full employment, often indicating inflation pressures.

Equilibrium GDP

The level of Gross Domestic Product at which the total quantity of goods and services produced equals the total quantity of goods and services purchased.

Deflationary Gap

A condition in which aggregate demand is lower than the aggregate supply potentially leading to deflation.