With a Cost Shock, a Small Decrease in Output Relative

question 59

Multiple Choice

With a cost shock, a small decrease in output relative to the increase in the price level would occur if the ________ curve is relatively ________.

• A) AS; flat
• B) AS; steep
• C) AD; flat
• D) AD; steep

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Definitions:

Customer Satisfaction

The measure of how products or services meet or exceed customer expectations.

Product Quality

The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

Repeat Customers

Individuals who make purchases or avail services from the same business or seller on multiple occasions, indicating loyalty or satisfaction.

Franchiser

A business entity that grants a license to a third party for the conducting of a business under the franchiser's marks.