One of the most difficult policy decisions faced by the federal reserve bank (the fed) is how to use monetary policy in response to a real negative shock such as a severe drought. answer the questions and assume that the federal reserve bank decides to address the negative real shock by focusing on inflation instead of a recession.
a. as a result of the real negative shock, the inflation rate in the economy will.
b. to remedy this situation, the federal reserve will seek to aggregate demand.
c. the fed is likely to the money supply in order to impact aggregate demand.
d. if the fed takes this approach, the real growth rate will from the point to which it was shifted by the real negative shock.

Jimmy's delicatessen sells large tins of tom tucker's toffee. the deli uses a periodic review system, checking inventory levels every 88 days, at which time an order is placed for more tins. order lead time is 22 days. daily demand is a constant 1515 tins, so average demand during the reorder period and order lead time (1010 days) is 150150 tins. draw a sawtooth diagram. assume that the beginning inventory level is equal to the restocking level and the desired service level is 99.9%. what is the safety stock level? (hint: look at the formula for calculating restocking level.) what is the average inventory level? the safety stock level is average inventory level is __chart: time (10,20,30), tins (0,150) lines touching both axisthe safety stock level is 0 tinsthe average inventory level is 75 tins