A Price Shock Could Be the Result of

question 39

Multiple Choice

A price shock could be the result of

• A) a sudden increase in the cost of securing certain important raw materials.
• B) a large and generous wage settlement that sets the precedent for wage settlements in the foreseeable, short-term future.
• C) a dramatic increase in the level of inflation expected by the major price setters across an economy.
• D) a sudden reduction in the money supply that looks just like an equivalent increase in the price level.
• E) all answers but d.

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Definitions:

Opposition

Resistance or dissent, expressed in action or argument, against a prevailing idea, policy, or entity.

Organizational Politics

The use of power, influence, and networking within an organization to achieve changes that benefit the individual or the organization, often involving a complex interplay of interests.

Negative and Positive Aspects

The unfavorable and favorable elements or outcomes associated with a particular situation, decision, or action.

Role Expectations

The behaviors, obligations, and privileges associated with a social role or position within a group or society.