The Goal of a Consultant Hired to Solve a Problem

question 10

Multiple Choice

The goal of a consultant hired to solve a problem in an organization should be to

• A)recognize that the organization has always been this way and little can be done to change it.
• B)learn as much as possible about the organization and the people within it.
• C)generate an action plan, with specific targets and dates.
• D)focus exclusively on changing the reward system, since everything else depends on it.
• E)make sure employees know the consultant has come to solve the company's problems.

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Definitions:

Price Level

This refers to the average of current prices across the entire spectrum of goods and services produced in the economy.

Spending Multiplier

The ratio of a change in output (economic activity) to a change in spending, indicating the ripple effect of an initial expenditure through the economy.

Aggregate Demand Curve

A graphical representation of the total demand for goods and services in an economy at various price levels, holding all else constant.

Expansionary Gap

A situation where the actual output in an economy exceeds the potential output, leading to inflationary pressure.