The Horizontal Linkage Model Is Best Applied to A

question 35

Multiple Choice

The horizontal linkage model is best applied to a:

• A) low pressure environment.
• B) stable environment.
• C) environment that requires speed.
• D) customer service environment.
• E) manufacturing environment.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.

Multiple Counting

The erroneous practice of counting the same item more than once when calculating economic data, such as in measuring GDP.

Intermediate Goods

Goods used in the production process to create a final product, such as raw materials, components, or subassemblies, which are not counted in a country’s GDP to avoid double counting.

Final Goods

Products that are ready for consumption by individuals or businesses, without further transformation or being used in producing other goods.