Which of the Following Best Describes the Overall Economic Impact

question 2

Multiple Choice

Which of the following best describes the overall economic impact of the food and energy supply shocks in the 1970s?

• A) Many Americans began spending more in an effort to acquire needed goods before the shortages grew worse.
• B) The economy experienced both rising price levels and increased unemployment.
• C) The prices of food and oil products increased, but there was little impact on other sectors of the economy.
• D) Because the U.S. economy is self-sufficient, these international supply shocks had little impact.
• E) Many consumers responded by boycotting oil-related and food products, driving down the prices of these goods.

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Definitions:

Culturally Sensitive Products

Culturally sensitive products are goods or services designed with an understanding and respect for the cultural norms and values of different consumer groups.

Domestic Strategy

Internationalizing by exporting goods abroad as a means of seeking new markets.

Labour Market

The arena in which employers and employees interact, considering the demand and supply of labor, where wages, employment levels, and working conditions are determined.

Forecasting Demand

The process of estimating the future demand for a product or service based on historical data, market trends, and other factors.