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Many thanks for your reply.
So does C = total consumption of goods and services in Country A, regardless of where they were produced? As opposed to C = total consumption of goods and services in Country A that were specifically produced by Country A.
Is this also true for the Government Expenditure and Investment figures?
Thank you.
Hi mrjonbain,
Thank you for your reply! However, the stock will actually go below 500. We only reorder at the 500 units level. Then, while waiting for the next delivery of 2000 units, we will deplete at least some of the 500 units, the extent to which will vary depending on lead time and customer demand.
The Top Gun analogy doesn’t hold – the fighters don’t wait until they drop to 1000 feet before activating an intervention, and drop even further below 1000 feet while waiting for their intervention to work.