In the Long Run,an Increase in Consumer Spending Would Cause

question 45

Multiple Choice

In the long run,an increase in consumer spending would cause output to ________ and the price level to ________.

• A)rise; rise
• B)rise; stay constant
• C)stay constant; stay constant
• D)stay constant; rise

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Definitions:

Generic Strategies

A framework in business strategy that outlines three main approaches a business can take to gain competitive advantage: cost leadership, differentiation, and focus.

Differentiation

The process of distinguishing a product, service, or business from competitors in order to attract a particular target market.

Cost Leadership

A business strategy focusing on gaining advantage by reducing production or service costs below those of competitors.

Transnational Strategy

A business strategy that involves operating globally but with responsiveness to local needs and preferences.