At the Onset of the 2008 Economic Slowdown, Prices at the Grocery

question 79

Multiple Choice

At the onset of the 2008 economic slowdown, prices at the grocery stores continued to rise. In some cases, products such as milk and bread almost doubled in price. In March 2008, a Boston newspaper reported, "The price of eggs was up 40% and milk was up 26%." Consumers were already being hit with high energy costs, and now their confidence in the economy was further shaken with job cuts and a loss of discretionary income due to increases in food prices. The economy was slowing, but prices were rising, signifying the potential for .

• A)deflation
• B)stagflation
• C)disinflation
• D)equalization

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Definitions:

Social Learning Theory

A theory that suggests people learn from observing others, through modeling, imitation, and social reinforcement.

Rotter's Theory

A psychological theory developed by Julian B. Rotter that emphasizes the importance of an individual's perceived control over outcomes, known as locus of control.

Locus of Control

A psychological concept that refers to how strongly people believe they have control over the situations and experiences that affect their lives.

Behavior Potential

The likelihood of a specific behavior occurring, influenced by environmental factors and individual predispositions.