Which of the Following Statements Is True Regarding the Leverage

question 79

Multiple Choice

Which of the following statements is true regarding the leverage of supply-chain savings?

• A) Supply chain leverage is about the same for all industries.
• B) Supply chain savings exert more leverage as the firm's purchases are a smaller percent of sales.
• C) Supply chain savings exert more leverage as the firm has a lower net profit margin.
• D) Supply chain leverage depends only upon the percent of sales spent in the supply chain.
• E) Supply chain savings have no impact on net margin.

---

Definitions:

Unemployment

The condition of someone being able to work and actively seeking work but unable to find employment.

Natural Rate

A concept referring to the level of unemployment at which inflation is not accelerated, suggesting an equilibrium between demand for labor and supply.

Long-Run Aggregate-Supply

The total quantity of goods and services that producers in an economy are willing and able to supply at a full employment level, regardless of the price level, in the long term.

Long-Run Phillips

Describes the relationship between unemployment and inflation over a longer period, suggesting that in the long run, there is no trade-off between inflation and unemployment.