Last Month You Introduced a New Product to the Market

question 407

Multiple Choice

Last month you introduced a new product to the market. Consumer demand has been overwhelming and appears that strong demand will exist over the long-term. Given this situation,
Management should consider the option to:

• A) Suspend.
• B) Expand.
• C) Abandon.
• D) Contract.
• E) Withdraw.

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Definitions:

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and progressive taxes, that automatically adjust to stabilize economic fluctuations.

Business Cycle

The natural rise and fall of economic growth over time, characterized by periods of expansion, peak, contraction, and trough.

Federal Government

The national government of a federal country, where powers are divided between central authority and constituent political units, such as states or provinces.

Discretionary Fiscal Policy

Government policy actions that involve changing government spending and taxation in order to influence the economy.