Fill in the Blanks: as a Dynamic Response to Demand

question 44

Essay

Fill in the blanks: As a dynamic response to demand shock in the short run, the DAD curve shifts (say in period t) ___________, causing inflation to___________ and output to ___________, while in next period (t+1) causing the aggregate supply curve to __________ .

Identify the challenges of idle production capacity and strategies for managing demand fluctuations.

Appreciate the continuum of offerings between tangible products and intangible services.

Recognize the cost structures associated with service delivery, including inventory carrying costs.

Understand how services can be classified by various criteria including the level of tangible vs. intangible attributes, and the sector (public, private, nonprofit).

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Definitions:

Assignable Cause

A specific factor or reason for variation in a process that can be identified and managed.

Particular Event

A specific occurrence or happening relevant to the context in which it is mentioned.

Variation

The act or process of altering or deviating from the standard or expected form, outcome, or specification.

Allowable Variation

The range of acceptable deviation from a specified standard in a product or process without compromising quality.