If Profits Are High Because the Price Level Rose

question 30

Multiple Choice

If profits are high because the price level rose,

• A)it is likely the result of an increase in the real wage rate.
• B)new businesses open and the quantity of real GDP supplied increases.
• C)business failures rise and the quantity of real GDP supplied increases.
• D)potential GDP must be decreasing.
• E)the AS curve shifts leftward.

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Definitions:

Lead Time

The time taken from initiating a process until its completion, often used in the context of the time between ordering a product and its delivery.

Fill Rate

A metric that measures the percentage of customer or sales orders that are fulfilled from stock available, indicating the ability to meet demand.

Standard Deviation

An indicator of the extent of variability or spread within a dataset, showing how significantly the values deviate from the average.

Lead Time

The amount of time that passes from the start of a process until its completion, often used in supply chain and project management.