Why Should Firms Consider Investing in a Presence on Larger

question 8

Multiple Choice

Why should firms consider investing in a presence on larger social networks?

• A) They set social media trends and have the largest audiences.
• B) It is where the competition is.
• C) It is where good content has the best chance of being shared.
• D) It is where the consumers are.
• E) They will likely grow, so a presence there will pay off in the future.

---

Definitions:

Expansionary Gap

A situation where actual output in an economy exceeds the potential output, typically leading to inflation.

Recognition Lag

The delay between the time an economic problem or trend is identified and the time it is officially recognized by policymakers or authorities.

Implementation Lag

The time needed to introduce a change in monetary or fiscal policy.

Recognition Lag

The time it takes for policymakers to identify an economic issue or trend that requires intervention.