In the First Half of 2008, Food and Energy Costs

question 11

Multiple Choice

In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production. As a result, economists warned that the economy would

• A) suffer an inflationary gap.
• B) see a decrease in aggregate demand and an increase in long-run aggregate supply.
• C) experience stagflation.
• D) see an increase in potential GDP.

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Definitions:

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The stage in the selling process where the salesperson gathers information about the prospective customer before the initial meeting.

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The process of analyzing the function and cost of products or services with the goal of reducing expenses while maintaining or improving quality.